Measuring Extra-Financial: The Collection of Ecosocial® Footprint Data and The Quality Of The Dialogue Established
Responsible Finance focuses on the quality of responses to the Ecosocial Footprint® questionnaire in this final article in the “Measuring extra-financial” section. Every year, Responsible Finance sends more than 160 European companies a questionnaire that lists more than 120 ESG indicators. The Empreinte Ecosociale® database which emerges from it is thus used by the manager-analysts of La Financière Responsable to better assess growth companies that benefit from sustainable development resisting the vagaries of the economy. This data collection makes it possible to assess the degree of involvement of companies in their ESG communication.
First of all, we observe that 97.6% of the companies making up the LFR Euro Développement Durable fund responded to the questionnaire against 91.9% for those in the Euro Stoxx 50 and 89.5% for those in the CAC 40. For the fund, only the IMA company refused to respond to our survey. This lack of response has led to the divestment of the value in application of the principle of exclusion of any company that refuses to communicate information useful for the investment decision.
Regarding the quality of the responses, La Financière Responsable distinguishes the spontaneous rate from the assisted rate. The first measures the number of spontaneous responses provided by companies in their annual reports and reference documents. In a second step, to enrich this rate, La Financière Responsable asks companies by sending them the pre-filled questionnaire to provide additional answers. This is the assisted rate. The responses of the index companies are slightly more complete than those of the companies making up the LFR Euro Développement Durable fund. On the other hand, the work of enrichment is more important for the companies of the fund (+ 23%) than for that of the indices (+ 16-17%). We can conclude that the companies of the indices, of larger size, master their communication and our solicitation brings less improvement than the smaller portfolio companies. Our commitment to them is therefore essential to raise their awareness of ESG issues and enhance their communication on the subject.
The Responsible Financial Officer analyzes, among other things, the quality of the responses according to the nationality of the companies in these three universes. French companies are exemplary in the communication of governance indicators (assisted rate of 86.9% against 74.2% for the whole). They are also ahead of the communication of social indicators (51.3% against 43%). For example, 92.3% of French companies answer the question on employee shareholding. They are also the only ones to answer it. Dutch companies are at the bottom of the ranking for responses on the social aspect with an assisted rate of 29.7%. Regarding the environmental aspect, the results are homogeneous. It should be noted that 66,
Conclusion of the section "Measuring extra-financial":
This series of articles has shown that ESG data and the various associated measures are a major asset for the selection of companies in our portfolios. La Financière Responsable's conviction in the need for measurement has been fueled for ten years by the annual collection of the Ecosocial® Footprint. In this regard, it has benefited from a Research Tax Credit since 2010. In 2019, La Financière Responsable will continue to update its blog. See you in early 2019 to discover our new section!
These figures come from the 2017 Ecosociale® Footprint collection campaign (ESG data for 2016).
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