Investment boutique La Financière Responsable (LFR) has highlighted material handling equipment manufacturer Jungheinrich as an example of good environmental, social and governance reporting.
In a briefing to analysts and investors, LFR said the German firm’s sustainable development report is well-structured and relevant to its business. “(Jungheinrich’s) ESG information is increasing every year.
There is a real positive coherence between the environmental management of the manufacturer's activity and the electrical products it sells,” the LFR report said. “Jungheinrich is by far the only one to provide a sustainable development report worthy of the name in its sector.”
Jungheinrich produces and markets a range of premium forklift trucks and storage solutions. The higher priced products and wider range of services reflect the firm’s targeting of large automotive clients requiring high end equipment. To differentiate itself, the firm relies on its experience and technologies in markets that require advanced technical skills and logistics engineering.
LFR said its Jungheinrich's business model and strategy are very well executed. The company has little debt and has positioned itself in markets that are expanding rapidly. Demand in perfectly corresponds to the solutions proposed by Jungheinrich while in China, the market demand is shifting to high-end electrical products.
“The extra-financial criteria underline Jungheinrich’s strategy of differentiation,” the LFR note said. “Despite a valuation that does not suggest immediate upside, our conviction on the value and quality of its business model lead us to maintain a position of 2% in the portfolio.”
The ESG aspects that have particularly impressed LFR are Jungheinrich’s human resource management (including talent retention and employee health and safety), its R & D, the eco-design of its products, and the energy efficiency of its buildings.
The aspects it should focus on to improve its ESG rating further include the environmental relevance of lithium-ion batteries and the reporting of the severity of work-related accidents, an important ‘Social’ indicator.
Notes to Editors
Mapfre and LFR
La Financière Responsable (LFR) is a Paris-based boutique asset manager focused on stock selection for Environmental, Social and Governance (ESG) investing. It is part owned by Mapfre Group, the major Spanish insurer, which took a 25% strategic stake in 2017 for an undisclosed sum. LFR has developed its own integrated ESG research and analysis model and will help build Mapfre’s expertise in line with the Group’s longstanding commitment to Responsible Investment.
MAPFRE is a global insurer, headquartered in Madrid, with a presence on five continents. It is the leading multinational insurance group in Latin America and one of the 10 largest European insurance firms by premium volume. MAPFRE has approximately 37,000 employees and 37 million customers worldwide. It is a signatory to the UN Global Compact, the UN Principles for Responsible Investment and the UNEP Principles for Sustainable Insurance.
La Financière Responsible
Paris based La Financière Responsable, with some €200 million (Jan 2018) in assets under management, is a French investment boutique founded in 2007 by asset managers Olivier Johanet and Stephane Prevost. Johanet was previously a director at Groupe Credit Agricole and then President at La Française des Placements Investissements. The firm has four actively-managed investment funds and an established track record for both the managers and the funds. LFR focuses on listed European companies using its Integrated Value Approach which includes 160 ESG factors considered before traditional financial analysis takes place.