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Abacus Green Deal

Transparency in sustainability


Normative and sectoral exclusions

Best in universe

ESG analysis based on double materiality

Positive impact measurement

Analysis of greenhouse gas emissions

Our ESG vision

The extra-financial investment objective of the Abacus Green Deal fund is to invest in a sustainable manner, as defined in article 9 of the SFDR Regulation.

Within the investment universe, shares of European companies whose activities are directly related to sustainable development, in particular environmental sustainability, are selected.




The Abacus Green Deal adopts a comprehensive extra-financial strategy. In particular, the fund’s specific analysis constrains the investment universe as a priority over the financial analysis. Within the investment universe, preference is given to shares of European companies of all capitalisations whose activities are linked to the ecological and energy transition.

Within the meaning of the SFDR regulation, the fund refers to article 9. Thus, the fund implements several approaches:

  • Normative exclusions: excluding companies involved in controversial weapons and companies found in violation of the 10 principles of the UN Global Compact and the OECD Guidelines;
  • Sectoral exclusions: fossil fuels, coal-fired power, tobacco and the adult entertainment industry;
  • “Best-in-Class”;
  • ESG risk and impact analysis;
  • Greenhouse gas emissions analysis, scopes 1,2,3;
  • Positive impact and sustainability analysis;
  • Dialogue with companies to deepen our analysis and encourage positive impact;
  • Risk and controversy monitoring.

Do no harm

“This product aims at investing sustainably.”

The Fund ensures that it is aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights, including the principles and rights set out in the eight core conventions identified in the International Labour Organisation’s Declaration on Fundamental Principles and Rights at Work and the Human Rights Charter.

This alignment is verified and monitored at the level of the investable universe. A company found to be in violation of these Principles is excluded from the investable universe.

Sustainable investment objective

Objective of contributing to the ecological and energy transition

Energy generation

Energy efficiency

Circular economy

Sustainable resources

Innovative technologies

Ensuring through investment in our five themes of activity

Measuring sustainability through these five environmental objectives

Investment strategy


Our socially responsible and sustainability-conscious convictions drive our extra-financial strategy and investment guidelines.


We perform our due diligence and ESG analysis on each company.

We conduct an in-depth analysis of the company’s activities, responsible approach and corporate culture.

Our analysis is done in-house using a proprietary tool.

With raw data, collected directly from the company, its reports and publications.

Our analysis is based on quantitative data, supplemented and contextualised by qualitative data.


We actively engage the company in order to collect data from the management and to discuss possible ways of improvement.


In order to ensure a minimum ESG threshold, for each fund a specific approach is assigned.

In addition, we strive to achieve an ESG performance of the portfolio above that of its benchmark.

We analyse and monitor around 130 KPIs including footprint and emissions intensity for all portfolios. We consider scopes 1, 2 and 3.

The ESG performance of our funds is subject to regular monthly and annual reporting.

The 5 postulates of our extra-financial strategy


Preventing negative impact on value and the environment

Normative and sectoral exclusions

ESG analysis based on double materiality

Pragmatic and objective management of controversies


Focusing on and encouraging positive impact

Positive impact measurement

Constructive and proactive dialogue

Objectives of the fund

Minimum investability threshold

The entire universe is rated and 20% of worst rated companies are excluded

ESG analysis coverage rate

More than 90% by weighting

ESG rating

Higher than benchmark

Emissions intensity

Lower than the benchmark


Exposure to liability risk

Exposure to sustainable developmen

Exposure to sustainable developmen

Environmental development
Social development

Exposure to liability risk is assessed through in-depth ESG analysis, analysing more than 120 criteria from the four pillars: environmental, social, societal, and governance. The ESG analysis captures the management company’s exposure to liability risk, which is defined as the legal risk of companies being sued and/or convicted for violating their ESG constraints and obligations.

Sustainable development exposure is assessed through the Sustainable Development Goals (SDGs), taking into account the direct and indirect contribution of the invested companies and assigning a score from 0 to 100.

The sustainable investment rate is calculated internally by taking into account three criteria: substantial contribution to one or more of the SDGs, absence of significant harm and good governance.

The sustainability calculation distinguishes between environmental goals related to clean water (MDG 6), clean energy (MDG 7), sustainable consumption (MDG 12), combating climate change (MDG 13) and biodiversity (MDG 15), and social goals related to human health (MDG 3), quality education and training (MDG 4), gender equality (MDG 5), decent work (MDG 8), and reducing inequality (MDG 10).

ESG ratings, both total and by pillar, are calculated by our proprietary tool for all invested companies. The tool is developed on a dual materiality basis, taking into account the sustainability risks to the company and the risk of the company’s negative impact on the sustainability factors.

The contribution to the SDGs is assessed by the direct contribution to one or more of the goals as a result of the company’s activity, and by the indirect contribution as a result of the company’s approach, behaviour and culture independently of the activity.

Monitoring the sustainable investment objective

Measuring sustainability

Ensures the construction of a truly sustainable portfolio

Three criteria:

  • substantial contribution to one or more SDGs
  • absence of significant harm
  • good governance.

Significant contribution to: SDGs 6,7,12,13,15

Control during the life of the asset

1 – Monitoring the universe
Initial analysis

2 – Portfolio monitoring
In-depth analysis

3 – Pre-trade control

4 – Post-trade control

5 – Commitment


Normative and sectoral exclusions

ESG analysis based on double materiality to prevent risks for the management company

Prevent financial risk to the value of the asset

Monitoring sustainability risks affecting the asset

Prevent liability and reputational risk for the management company

Ensure negative impacts of assets on sustainability factors

ESG analysis in figures

Relevant categories
Criteria analysed
Criteria used
Of ESG funds
Of rated companies

Variable materiality



Chemical products


More relevant KPIs

Raw material sourcing
Human rights in the supply chain

Energy efficiency
% of renewable energy in the energy mix

Waste and water treatment
Employee health and safety

ESG and sustainability policy
Stakeholder engagement

Less relevant KPIs

Data protection


Diversity at work

GHG emissions at entity level

Carbon approach

These are emissions that are produced directly at the company level, from fixed or mobile installations located within the organisational perimeter, including sources owned or controlled by the company.

These are mainly emissions created in the process of producing electricity, steam, heat and cooling.

These are mainly emissions that occur in the company’s supply chain, including upstream and downstream emissions. In other words, emissions that are linked to the company’s operations.

Or avoided emissions. These are emission reductions that occur outside the life cycle or value chain of a product, but as a result of the use of the product. They are measured against a reference situation or product mix.

Scope 4 emissions are avoided emissions from the use of this product, through efficiency improvements or energy-efficient and carbon-intensive reductions. In other words, scope 4 emissions are not the emissions induced by working from home, they are the emissions avoided by not using transport to come to the office.
They are not the ‘negative’ emissions to be subtracted from the induced emissions.
These emissions are not currently established in a standardised way, so we make sure that our approach is transparent and based on recognised benchmarks and methodologies.
Scope 4 emissions are included in our analysis only as an indication to complement our carbon approach.

Using data on the emissions of invested companies, some of which may be modelled, the management team calculates the greenhouse gas (GHG) emissions footprint and intensity of our funds.

  • The emissions footprint is calculated at portfolio level and represents the amount of tonnes of CO2 per million euros invested.
  • Emissions intensity is first calculated at company level and represents the ratio of emissions to company turnover. The portfolio intensity is calculated as the average of the total emissions over the companies’ turnover.

The intensity and footprint can include different sums of scopes (scope 1 and 2 or scope 1 and 2 and 3), depending on the portfolio coverage. The scopes taken into account for the calculation are specified.

Promotion of E and S characteristics

Direct contribution
of companies by sector and type of activity

Sustainable forest management company

Waste management and treatment company

Contribution indirecte
des entreprises selon leur performance

Any company that has implemented energy efficiency measures

Any company that has an employee training programme in place

The Fund uses a specific internal tool to assess the positive impact and sustainability of companies. Our specific impact assessment tool calculates the direct or indirect contribution of each company to one or more of the Sustainable Development Goals (SDGs). When building the investment case, we look at companies whose activities intentionally and measurably achieve positive environmental and social impacts. This positive impact analysis of issuers does not constrain the investment universe.

The impact analysis contains two components to measure the positive impact of companies:

  • The calculation of the direct contribution, which looks for the direct or fundamental correlation between the activity of the invested company and the objectives of sustainable development,
  • The calculation of the indirect contribution, due to its approach, its behaviour and its corporate culture independently of its activity

Sustainable investment

The fund calculates the sustainable investment rate for issuers.  This calculation is carried out internally using a proprietary tool, taking into account three criteria: substantial contribution to one or more of the Sustainable Development Goals (SDGs), absence of significant harm and good governance.

Sources and data

External data - internal tools and analysis

We attach great importance to the development of proprietary models built on our expertise to provide tangible added value in the application of our non-financial strategy. Our analysis and monitoring tools respect this principle and aim to offer results that we control as a whole.

Our proprietary tools developed on the basis of international standards

The management team is responsible for scientific, technical and regulatory monitoring in terms of tool development and extra-financial management. It relies on international standards:

  • UN Sustainable Development Goals (SDGs) for their granularity and in-depth, global approach.
  • The Global Reporting Initiative (GRI) and Carbon Disclosure Project (CDP), for their relevant publications and their work on improving transparency in the extra-financial field;
  • Documentary sources published by European Union bodies such as the European Securities and Markets Authority (ESMA) and the European Environment Agency (EEA).
  • Publications from national public authorities such as, for France, the French Environment and Energy Management Agency (ADEME) and the French Financial Management Agency (AFG);

Duty of care

Monitoring of the investable universe :

  • Exclusions according to our Exclusion Policy
  • Analysis of controversies and risks
  • Entitled ESG analysis, with the exclusion of 20% of the worst rated companies (Best in Universe)

Daily monitoring and updating

Portfolio monitoring :

  • In-depth ESG analysis
  • Impact and sustainability analysis
  • Controversy monitoring

Daily monitoring, data update at least annually, ad hoc in case of controversies

Spot check of investability and ESG risk before an order is filled
Updating and monitoring daily ESG ratios.

Daily monitoring of the achievement of ESG objectives within the portfolio:

  • Rating above the benchmark
  • ESG analysis coverage rate >90%.
  • Investability rate >90%.
We communicate with companies on the subject of their responsible approach.

We make contact on several occasions:

  • Occasionally, in order to deepen our analysis
  • Regularly at ESG forums
  • At the request of the company

The management team is also responsible for the identification, measurement and control, at the first level, of the risks related to the implementation of the extra-financial approach within the managed portfolios. These risks are controlled at the second level by the management company’s Middle Office Risk, with the support of the permanent control delegate.

Methodological limitations

The ESG analysis adopted is based mainly on qualitative and quantitative data provided by the companies themselves. It therefore depends on the heterogeneity of the quality of this information and the quantity of data available. To fill any gaps, the fund contacts companies to obtain the necessary information through ESG questionnaires.

ESG data received from third parties may be incomplete, inaccurate or unavailable from time to time. There may also be a size bias, as large caps have more budget allocated to their responsible and CSR approach.

Carbon analysis is limited by the lack of a clearly defined reporting framework. The methods used by companies to calculate their CO2 emissions may vary in quality as well as in quantity. Thus, the data published by companies may be based on different perimeters of induced emissions (Scope 1, 2, 3). In particular, Scope 3 emissions are often unavailable. All of this can affect the calculation of the portfolio’s overall footprint.


Philippe Hottinguer Gestion wishes to promote the consideration of the extra-financial sphere among its clients and investors. The company encourages the integration of ESG factors into the decision-making processes and activities of the companies in which it invests.

The company is committed to the UN Principles for Responsible Investment, to the 6 Principles for Responsible Investment, including those relating to shareholder engagement. We are committed to

  • Being active shareholders, integrating ESG issues into our shareholding policies and procedures.
  • Encourage the companies in which we invest to publish information about their ESG practices.
  • Promote the adoption and implementation of the Principles in the investment industry.
  • Cooperate to improve the effectiveness of our implementation of the Principles.

To this end, we have planned several engagement approaches.

Collaborative commitment

Promoting and sharing knowledge on sustainable finance issues

Forums, conferences…

Collaborative platforms

Individual commitment

Protecting and improving the investment process, monitoring ESG performance and encouraging the positive impact of assets

ESG Questionnaire

Constructive and proactive dialogue

Votes at meetings

Aligned with the company’s investment objectives and principles

Votes at meetings

Achieving the sustainable investment objective

Benchmark index: Eurostoxx

The benchmark follows the same ESG rating strategy with the same KPIs, calculation methods and is rated using the same variable materiality as the portfolio. Compliance with the portfolio’s sustainability objectives is measured daily. This is done in part by using the ESG rating of the benchmark. Other KPIs, such as carbon intensity or footprint, are monitored regularly and reported on a monthly basis. In this sense, the benchmark is continuously monitored and ensured to be aligned with the environmental and social characteristics promoted by the financial product.

The respective ESG scores of the investable universe and the benchmark are weighted by their capitalisation and updated daily to ensure continuous alignment with each ESG objective of the portfolio.

We use the same methodology for calculating the ESG factors of the index and the portfolio. Our responsible investment policy details the methodology applied.

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