RE · 2019. 9. 16. · 20172018 20172018 0% 5% 10% 15% 20% 25% 30% 35% 27% 20% 11% 18% We assess...

Report published on June 30th 2020 pertaining to the SycomoreSélection Responsable and Sycomore Sélection Responsable SFS funds

and compliant with the requirements of Article 173-VI of law n°2015-992 of August 17th 2015 on the “energy transition

for green growth” as of December 31st 2019.

SYCOMORE SÉLECTION RESPONSABLE

SYCOWAY AS AN INVESTOR

RESPONSIBLE INVESTOR REPORT RE

PORT

2 3SYCOMORE SELECTION

RESPONSABLE 2019 REPORT

This report concerns Sycomore Sélection Responsable and Sycomore Sélection

Responsable SFS, “sustainable development” selection funds, certified with the

Socially Responsible Investment label (SRI label created and supported by the

French Ministry for the Economy and Finance(1)). It should be read together with

Sycomore AM’s “Sycoway as an Investor” report. This publication provides details

on the sustainable development criteria embedded within the fund’s investment

process and on the sustainable development performance of our investments in

2019. It is compliant with Article 173-VI of law n°2015-992 of August 17th

2015 on the “energy transition for green growth”. For more information on the

methods and resources used for the sustainable development-driven analysis of the

companies that make up our investment universe, please consult Sycomore AM’s

“Sycoway as an Investor” report.

Our ENGAGEMENT and VOTING at Shareholders’ Meetings P12-2303Looking for IMPACTS P24-3104

SYCOMORE SÉLECTION RESPONSABLE, an SRI-LABELLED fund P4-501The sustainable development performance of SYCOMORE SÉLECTION RESPONSABLE P6-1102

INTRODU CTI ION

SOMMAI RE

SYCOMORE SELECTION RESPONSABLE 2019 REPORT

(1) The Sycomore Sélection Responsable fund also received the Belgian Towards Sustainability label and the Austrian Umweltzeichen environmental label.

The fund comes with no performance or income guarantees and carries a ridk of capital loss. Before investing, please read the Key Investor Information Document (KIID) for each fund available on ou website: www.sycomore-am.com. The indications are based on data published by the companies in 2018. The ESG performances shown in this document are those of companies whose shares featured in the portfolio ans as such, do not represent the fund’s direct contribution to these performances. The SRI Label, created and backed by the French Ministry of Finance, helps retail investors identify resposible and substainable funds. Its aim is to serve as a guide investors, but it offers no guarantees on the capital invested, nor does it certify the quality of investment process applied to the given fund.

http://www.sycomore-am.com

SYCOMORE SÉLECTION RESPONSABLE, an SRI-LABELLED fund01

AN SRI-LABELLED FUND, MANAGED WITHSUSTAINABLE DEVELOPMENT-DRIVENINVESTMENT DECISIONS

The Sycomore Sélection Responsable* fund aims, on the one hand, at generating financial returns above those of the EuroStoxx Total Return index over a minimum investment horizon of five years, and on the other, at creating positive social and environmental impacts in keeping with the United Nations’ Sustainable Development Goals (SDGs), on the basis of a multithemed socially responsible investment process.

This search for positive social and environmental impacts takes place at three levels:

Intentionality - The stock selection and portfolio construction process, described below, is driven by indicators developed in order to qualify and quantify the societal and environmental contribution of companies; the positive contribution criteria to be complied with directly reflect the fund’s intention.

Additionality - At the heart of our approach as a responsible investor, we advocate best practices via our shareholder engagement (as detailed in chapter 3), in order to help companies improve their performances on these specific issues.

Impact measurement - The indicators mentioned above enable us to report on the alignment of our investments with the fund’s intention: we are gradually developing our impact measurement approach and, this year, we are disclosing several indicators that can help underpin the fund’s societal and environmental contribution and its exposure to the SDGs.

This conviction-driven approach, with no style, sector, country or market capitalisation constraints, is based on in-depth fundamental research conducted on the underlying companies with a focus on sustainable development related issues. This analysis enables us to assess risks and identify the best long-term opportunities. Our approach is based on our integrated fundamental analysis model, SPICE, described in our Environment, Social and Governance (ESG) Integration Policy(2).

• Four selection criteria designed to highlight companies offering solutions to sustainable development challenges: 1/ business models with positive societal contributions (SC) aligned with the SDGs; 2/ business models with positive Net Environmental Contributions (NEC) aligned with the SDGs, the Paris Agreement and European taxonomy; 3/ companies displaying the best sustainable development practices (SPICE); 4/ companies displaying a clear transformation strategy on sustainable development issues and receiving our support as part of our shareholder engagement. The company must comply with at least one of the 4 following selection criteria: Societal Contribution ≥ 3.5/5; Net Environmental Contribution (NEC) 10%; SPICE rating > 3.5/5 or 3 < SPICE rating 3.5/5.

• Exclusion criteria remove companies displaying sustainable development risks: the identified risks include insufficient sustainable development practices that have a negative impact on a company’s stakeholders and can threaten the companies’ competitiveness. A company is excluded if it is involved in businesses affected by our SRI exclusion policy due to controversial social or environmental impacts, if the company displays a SPICE rating of 3 out of 5 or under, or if it is affected by a level 3 controversy.

In keeping with the fund’s objective, the investment universe of Sycomore Sélection Responsable is screened based on the following criteria, which include sustainable development factors:

4SYCOMORE SELECTION RESPONSABLE 2019 REPORT

* For the sake of simplicity, throughout the entire document, any reference to the Sycomore Sélection Responsable fund shall also include the Sycomore Sélection Responsable SFS fund.(2) Our ESG integration policy is available on our website..

For more information, please read the AFG-FIR-Eurosif Transparency Code for the Sycomore Sélection Responsable fund. 5SYCOMORE SELECTION


OUR

FUND

Our

SELECTIONCriteria


SUSTAINABLEThemes

21%

10%

18%8%

30%

10%3%

Transition énergétique

Gestion durable des ressources

Santé & Protection

Nutrition & Bien-être

Digital & Communication

Leadership SPICE

Transformation SPICE

The Sycomore Sélection Responsable fund is exposed to the following themes, considering the constraints of its selection process:

The sustainable development performance of SYCOMORE SÉLECTION RESPONSABLE02

3,53,3

3,43,5

3,23,3

2,93,3

3,13,4

2018

3,73,3

3,43,7

3,33,6

2,93,4

3,13,6

2019

3,63,3

3,43,6

3,23,5

2,83,5

Governance

People

Society & Suppliers

3,1Environment

S P I C E

3,4

2017

Sycomore Sélection Responsable

Energy transition

Sustainable resource management

Healthcare & Protection

Nutrition & Well-being

Digital & Communication

SPICE Leadership

SPICE Transformation

We assess the sustainable development performance of our investments using our fundamental analysis model, SPICE(3).

As of December 31st 2019, the weighted SPICE ratings of investments held in the Sycomore Sélection Responsable fund are higher than those of the benchmark:

The

SPICE RATINGS

2019 coverage ratio (weighting): 100% - SSR / 100% - EuroStoxx 2019 coverage ratio (number): 100% - SSR / 98% - EuroStoxx

EuroStoxx

7SYCOMORE SELECTION

RESPONSABLE 2019 REPORTSource: Sycomore AM, data as of December 31st 2019 (3) SPICE for Society & Suppliers, People, Investors, Clients and Environment. For more information on our fundamental analysis

model, please refer to our ESG Integration Policy

2017 20180%

5%

10%

15%

20%

25%

30%

35%

27%

20%

11%

18%

2019

22%

15%

8



This performance is also measured using specific social, environment, governance and human rights indicators.

As far as social challenges are concerned, we look at the headcount over 3 years: we assess a company’s ability to create employment based on the change (positive or negative) in cumulated staff numbers over the past 3 financial years. In 2019, and in keeping with our objective of selecting companies creating sustainable and consistent value for all of their stakeholders - notably by taking into account their social and/or environmental positioning, Sycomore Sélection Responsable displays a 22% headcount growth, compared to 15% for the EuroStoxx index. The companies that contributed to the rise of the average headcount over the past three years included: ASML, the Dutch leader in lithography systems, where the headcount has grown by 50% and which weighed over 3% of the portfolio in December 2019; Korian, the specialist retirement home and care services, which saw a 50% rise in staff numbers over the same period (organic and through acquisitions); Tomra in Norway and Grifols in Spain, which posted growth rates of 64% and 61% respectively. However, headcount growth over three years came in negative for Unilever, Schneider Electric, Sanofi, Adidas, L’Oréal, Nexans and Saint Gobain due to disposals or reorganisations.

Our

INDICATORS

Sycomore Sélection Responsable EuroStoxx

EMPLOYMENTHeadcount growth over 3 years

2019 coverage ratio (weight): 100% - SSR/ 81% - EuroStoxx 2019 coverage ratio (number): 100% - SSR / 100% - EuroStoxx

9SYCOMORE SELECTION


39%

37%

38%

37%

Sycomore Sélection

Responsable

EuroStoxx

20182017

15%

14%

35%

38%

2019

15%

14%

9%

11%

When looking at Governance issues, we analyse the percentage of women at Executive level: the difference between the share of women on the Executive Board and in the total headcount is a meaningful indicator of the company’s ability to promote diversity and equal opportunities at all levels of the organisation. Although many companies report on the percentage of women in management positions, these disclosures relate to varying levels in the company hierarchy and the underlying “management” positions often differ from one company to the next. In order to use homogeneous data that can be cumulated at fund level, we have opted for the percentage of women on the Executive Board. In 2019, the feminization of executive boards in the companies owned by Sycomore Sélection Responsable is slightly higher than in the index. In order to encourage this positive trend and identify the practices that could accelerate change, in 2019, we continued our shareholder dialogue - that had begun in 2018 - on the issue of promoting women to management roles. A progress report is provided in chapter 3. Nevertheless, as of end December 2019, only 3 companies (Kerry Group, L’Oréal and Unilever) reported more than 30% female executive committee members, and 14 had none (ASML, Cancom, IMCD, Kingspan, Prysmian, Smurfit Kappa, Nexi, SIG Combibloc, Symrise, TeamViewer, Technogym, B&S Group, Biocartis, Cellnex Telecom). We therefore intend to strengthen our shareholder engagement efforts on this issue.

MALE/FEMALE DIVERSITYFeminization of Executive Board

Percentage of women on payrollPercentage of women on executive board

Percentage of women on payrollPercentage of women on executive board

2019 Coverage ratio (weight): 95% (payroll) and 100% (executive) – SSR / 78% and 74% - EuroStoxx2019 Coverage ratio (number): 93% (payroll) and 100% (executive) – SSR / 81% and 88% - EuroStoxx




As far as human rights are concerned, the percentage of companies that have developed a formal policy: corporate engagement on human rights issues can be assessed by looking at whether the company has set up a strategy and implemented a relevant policy. In this respect, we have selected an indicator, provided by Bloomberg, identifying companies that communicate on the implementation of a policy relating to human rights. Note that we have chosen to select one single indicator based on the controversies that affect the company. Engagement and means deployed by the company to tackle human rights issues: the number of controversies depends on the size of the company and on its media exposure and does not necessarily reflect the procedures implemented with a view to addressing the controversial event. Within Sycomore Sélection Responsable, the indicator reflecting companies with a formal human rights policy has noticeably improved; the only company not to have developed a human rights policy is Stadler Rail, which was recently listed on the stock market (in April 2019).

HUMAN RIGHTSPercentage of companies with a human rights policy

No policyNo policy

Policy in placePolicy in place

2019 Coverage ratio (weight): 100% for SSR / 93% for EuroStoxx2019 Coverage ratio (number): 100% for SSR / 95% for EuroStoxx

2019

2019

20182017

20182017

Sycomore Sélection Responsable

86%

88%

EuroStoxx

88% 98%

93% 94%

For further information on the methodology used to calculate the indicators, please refer to theProtocol for ESG performance reporting available on our website.

(4) Net Environmental Contribution: developed by Sycomore AM in partnership with I Care&Consult and Quantis, the NEC measures the extent to which a company’s business model is aligned with the environmental and energy transition and global warming targets, business by business, on a scale ranging from -100% to +100%. For more information, please refer to our Natural Capital Strategy available on our Responsible Approach page.

(5) NEC ß calculated by Sycomore AM, I Care & Consult and Quantis on the basis of 2016 and 2017 data.(6) NEC 1.0 calculated by Sycomore AM, I Care & Consult and Quantis on the basis of 2017, 2018 and 2019 data.

-1%-2%

2017 2018

-1%

2019

2017 2018

7%

-100% 100%

SycomoreSélection Responsable

EuroStoxx

6%

2019

11%

(5)

(5)

(6)

(6)

(6)

(6)

2019 Coverage ratio (weight): 100% - SSR / 99% - EuroStoxx2019 Coverage ratio (number): 100% - SSR / 98% - EuroStoxx

NET ENVIRONMENTAL CONTRIBUTION

On environmental factors, the NEC: we assess the alignment of our investments with the environmental and energy transition through the Net Environmental Contribution. As of December 31st 2019, the NEC(4) of Sycomore Sélection Responsable stood at +11%(6) vs. -1%(6) for the EuroStoxx. This outperformance is a direct reflection of the impact criteria used when picking stocks for the portfolio, as one is specifically based on the companies’ NEC.

10 11

Our ENGAGEMENT and VOTING at Shareholders’ Meetings03


SYCOMORE SELECTION RESPONSABLE 2019 REPORT12 13

DIALOGUEEngaging with companies is a key tenet of our role as investors:

Meeting the management and conducting on-site company visits are particularly important aspects of our research effort. Our objective is to gain a deep understanding of the company based on the realities of its operations and the vision of its executives.

As part of our voting at shareholders’ meetings, we discuss our voting intentions with the companies concerned and inform them of our voting policy and of the best practices we wish to promote.

These talks enable us to recommend and discuss best practices, notably in areas of governance, human rights, or on social, societal and environmental issues. We encourage companies to integrate these challenges as a core strategic axis, and to improve transparency on the means in place and the results achieved.

We firmly believe in the power of collaborative action and as such, are members of the Principles for Responsible Investment (PRI), the Forum pour l’Investissement Responsable’s (FIR) Dialogue and Engagement Forum, the Investor Alliance on Human Rights, the FAIRR (Farm Animal Investment Risk & Return) Initiative, and the investor group supporting the Access to Medicine foundation – initiatives we take part in via collaborative engagement actions, some of which are described in more detail below. From an environmental perspective, we are the creators of the NEC Initiative, members of the IIGCC, the CDP and signatories of the Climate Action 100+, to drive improvements in corporate practices and expertise as far as environmental investments are concerned. On social issues, we have been members of the Human Capital Management Coalition since 2016 and the Workforce Disclosure Initiative since 2018, two investor groups advocating the development of corporate social reporting practices.

Analysis

Our Engagement policy is available on our website.

Our

ENGAGEMENTInitiatives

The list of companies we engaged with is available in Appendix.

Society & Suppliers

People

Investors

Clients

Environment

S

P

I

C

E

In 2019, we formally engaged with 30 portfolio companies having identified 84 areas for improvement (compared to 62 in 2018). 28 of these engagement initiatives concerned societal and supply chain-related issues (S pillar of the SPICE analysis), while 66% our engagement dialogue last year involved corporate governance issues. These matters were addressed during the course of the regular meetings we conduct throughout the year with our portfolio companies and ahead of the shareholders’ meetings - a period that is particularly suited to holding these discussions. The main topics that were discussed concerned the company’s societal contribution and ethical business practices.

I29%

E12%

C6% S

33%

P20%

Talksenable

us to

SYCOMORE SELECTION RESPONSABLE 2019 REPORT14

In 2018, Sycomore AM joined the British «Farm Animal Investment Risk & Return” (FAIRR) initiative, created in 2015 by Jeremy Coller and supported by over 100 investors with assets weighing over $20 trillion. FAIRR’s goal is to inform investors

of the risks associated with intensive cattle farming, both environmental and societal (greenhouse gas emissions – GHG, deforestation, loss of biodiversity, water consumption and pollution, excessive use of antibiotics, animal welfare etc.) and facilitate collaborative engagement initiatives.

Through FAIRR, Sycomore AM has recently taken an interest in food industry giants and their dependence on animal protein; producing this protein uses around one third of the soft water consumed throughout the world and generates 14.5% of global GHG emissions. The diversification of protein sources is a major societal issue, as the negative consequences of intensive livestock breeding on human health and animal welfare are increasingly under the spotlight. The excessive administration of antibiotics to farm animals is one of the main reasons behind the growing resistance to antibiotics, a problem considered by the World Health Organisation as “one of the most severe threats for global health, food security and development”.

The investors involved in the engagement initiative urged 25 multinationals to diversify their protein sources in order to boost their growth, improve competitiveness and their innovation capabilities, and reduce their exposure to risks in a world where resources are limited.

While only 25% of the companies we met are actively looking to diversify their protein ranges, almost 50% announced that they made investments in 2018 in new substitute protein products and technologies.

We engaged an in-depth shareholder dialogue with two portfolio companies – Kerry Group and Unilever – on this particular issue. The outcome of this process was a 6-point analysis (materiality, strategy, product portfolio, engagement with consumers, measurement and reporting, engagement with investors) which resulted in a rating out of 100 for both of the companies. Details on this shareholder engagement are provided in the following pages.

FOODTransition

SYCOMORE SELECTION RESPONSABLE 2019 REPORT 15


Unilever – which derives 5% to 10% of its income from animal protein – came top in the ranking with a score of 72 out of 100. The group recognises the risks associated with an excessive consumption of animal protein, as well as its role in educating consumers. Unilever has committed to broadening its plant-based product portfolio in order to meet its customers’ demand for flexitarian diets and has recently completed a number of strategic takeovers in the vegetable protein industry, including Sir Kensington’s and The Vegetarian Butcher.

Some brands (Knorr, Magnum and Ben & Jerry’s) now offer plant-based products in Europe and in the United States. The group has defined clear sustainable sourcing requirements since 2010, and 100% of products will have to be sourced sustainably by 2020. 75% of dairy products are now produced sustainably (as verified by PWC). However, Unilever announced early in 2019 that it would miss its 100% target for 2020 as some markets, such as Russia, are lagging. The group measures and publishes its GHG emissions throughout the products’ life cycle, which is still rare and an excellent practice for the sector. GHG emissions produced from cattle farming only account for 2.5% of the group’s total emissions.

We encouraged Unilever to draw up a more strategic plan and publish targets and indicators to help the group transition the portfolio towards more vegetable protein (for example, via targeted brands or specific industries), thereby ensuring that the company’s exposure to animal protein is aligned with its carbon emission reduction strategy.

Kerry Group received a score of 45 out of 100. The fact that in 2019, the group had not developed a strategy for measuring and reducing its GHG emissions over the full lifecycle of its products reflected poorly. The

group’s low score is also the result of low interaction with consumers, despite 20% of its income being derived from mass market products (mostly dairy and meat-based). Kerry only recently announced its intention to develop vegetable-based options for its mass market brands and the group is lagging its peers on these fast expanding product categories. This is a missed opportunity for the group, as its division focused on producing ingredients for the food industry (Taste and Nutrition division, weighing 80% of income) is well positioned to leverage fully on the growth of the market for plant-based products. In this respect, Kerry has made considerable investments in vegetable-based protein solutions in order to offer its B2B clients a selection of alternative proteins.

To improve its practices and reduce the negative impacts of its animal-product sourcing on the environment, Kerry has been concentrating efforts on a number of initiatives, including cattle feed, in order to reduce the methane caused by enteric fermentation.

The management of manure is also one of the levers being researched as part of the group’s strategy for reducing GHG emissions at farm level.

Through our shareholder dialogue, we have encouraged Kerry to:

• Strengthen its sustainable development activities in the area of animal protein. We also reminded Kerry how strongly we feel on the need to embed the issue of vegetable-based protein sources within a comprehensive sustainable development strategy, while giving as much importance to other essential issues such as the nutritional quality of products, food waste and CO2 emissions produced throughout the life of a product (including scope 3);

• Develop a more strategic plan for the transition of its product portfolio, by defining and publishing targets for its consumer food division – where the group is most negatively exposed, in order to guarantee that its exposure to animal protein has as fewer negative impacts as possible for the environment and for society.



SYCOMORE SELECTION RESPONSABLE 2019 REPORT 17

The mission of the Korian group is to care for people who are temporarily or durably weakened due to old age or health problems and to act as a trusted partner, for the individuals concerned and for their families. To achieve this, the group – present in 6 European countries and employing 56,000 people - offers solutions adapted to differing

needs: clinics specialising in follow-up and rehab care, medical nursing homes, home care and services, serviced homes and senior flat shares.

When analysing the societal contribution of Korian’s activity, we appreciate the fact that the group provides solutions to the growing needs related to old-age dependency, knowing that by 2030, seniors aged over 65 will account for almost a quarter of Europe’s population. Thanks to a diversification strategy, the group is able to offer tailor-made solutions that are better suited to people who are losing their autonomy, but do not need an environment that is as medical and secure as a retirement home. The density of the network is also an important criterion in measuring the geographical accessibility of these services. In France, the group is present throughout the country and almost 60% of people over 75 live less than 10km away from a Korian care facility.

Nevertheless, medical nursing homes have been rather controversial in recent years, and the tough working conditions and cases of ill treatment and negligence have been under the spotlight and weighed heavily on the image of the industry. We are convinced that transparency on the

management of these risks is essential for restoring trust between different stakeholders – which is why the issue is a key element in our dialogue with the group.

Since 2018, we have held 10 meetings dedicated to extra-financial issues with the Korian group, mostly focused on the quality of care and human capital management. Our different contacts, including the Head of Human Resources and CSR, the Chief Medical, Ethics and Service Quality Officer, the Managing Director of the France Senior division, and the Chairman of the Board, enabled us to deepen our understanding of these issues, both at industry and group level.

During these discussions, we recommended the publication of a series of detailed performance indicators, based notably on the best practices applied in the healthcare industry, covering the quality of care and residents’ quality of life (number of incidents that occurred, number of complaints, average hours of activity per resident…) but also human capital management (turnover, percentage of staff on short-term and part-time contracts, health and safety indicators allowing for country comparisons…). This requires developing homogenous procedures and tools across the different countries in which the group operates, a task which Korian is working on at present. We also insisted on the importance of using these performance indicators to set ambitious quantitative targets that are integrated to management remuneration, and on the benefits of strengthening governance on social and societal issues at the highest echelons of the group, by drawing on external experts recognised for their knowledge in these matters.

In 2019, the group unveiled its corporate project “Le Soin à cœur“ over a five-year horizon. The CSR strategy that was presented includes 15 tangible commitments, each based on quantitative indicators. On the issue of quality of care, Korian’s objective is to obtain ISO 9001 certifications for 100% of its facilities by 2023 (vs. 8% in 2019), a particularly important step for leveling out the quality procedures in different countries. Korian also created a Stakeholder Council which includes 14 qualified experts whose mission will be to provide in-house insights, notably on social and medical matters. We consider these announcements to be important positive signals for the integration of social and societal issues within the group’s strategy.

We have also noted significant progress on transparency, with the first ever disclosure, in the 2019 Annual report, of staff turnover data (22%) and the frequency of severe undesirable events directly related to the care given to residents or patients (a ratio of 0.33 for 10,000 days of residency), which will enable stakeholders to monitor the performance of these key indicators going forward.

We shall continue our dialogue in 2020 in order to monitor the implementation of these commitments by 2023 as well as the many initiatives launched by the group. We shall also continue to discuss our expectations on the issue of transparency.

and working conditions in retirement homes

Quality

OF CARE



RESPONSIBLETaxation GENDER DIVERSITY

The collaborative engagement led by the PRI (Principles for Responsible Investment) on the issue of responsible taxation, which Sycomore AM has taken part in alongside thirty other international investors since 2017, came to a close in 2019.

The objective of the project was to initiate a constructive dialogue with the companies in order to discuss investor expectations, and notably: a tax policy aimed at redistributing a fair share of the value to the communities that took part in its creation, fully integrated within the company’s governance and sustainable development strategy, and improved reporting transparency, enabling investors to understand how the company is addressing this particular issue.

Among the 41 multinationals operating in the technology and healthcare industries that were contacted by investors, 33 agreed to a dialogue on the issue. Since the beginning of the engagement initiative, 23 companies have published their tax policy and 27 have made formal commitments not to resort to aggressive tax optimisation practices. These publications are a first step in enabling investors to challenge companies on the implementation of these policies and on the identification of practices they will not resort to. Nevertheless, the release of tax information on an individual country basis, which would serve as evidence that these policies are duly applied, remains a sticking point. As of the end of 2019, none of the countries that took part in this dialogue had published country data.

Nevertheless, at the end of 2019, the Global Reporting Initiative, which provides an international benchmark for sustainable development reporting, published a standard report dedicated to tax issues, including detailed information country by country. This was a major step forward and a useful tool for investors to push for their requests, on the basis of a recognised framework.

In 2019, Sycomore AM continued to engage with companies on this issue through individual dialogue, and through another collaborative initiative led by the Forum pour l’Investissement Responsable (FIR)’s Dialogue and Engagement Commission, the first stage of which involved sending out a specific questionnaire to CAC 40 companies.

More details on the outcome of this engagement initiative are available in the report published by the PRI.

Despite growing interest in the issue, the most recent statistics(7) reveal that the percentage of women in various management roles has only marginally increased in recent years. Yet the presence of women in executive roles – more than on the board of directors – is an essential driver for the promotion of gender equality throughout the company.

It was against this backdrop that in the final quarter of 2018, Sycomore AM launched a shareholder engagement campaign focusing on gender equality in the workplace.

Our aim was to:

1. Reiterate to the companies we own in our portfolio how important this issue is for us as investors.

2. Deepen our understanding of the different approaches adopted by the companies and identify the best practices.

3. Encourage the adoption of best practices by companies within our investment universe, as well as improved transparency on this issue.

Achievements at the end of 2019:

During the course of our dialogue, we made recommendations for improvement to 33 companies with a specific focus on gender equality at work.

We conducted 15 interviews on the issue in order to look in more depth at various dimensions (governance and strategy, performance measurement and analysis, action, communication and transparency).

Percentage of women in key management roles in 2016 and 2019

SYCOMORE SELECTION RESPONSABLE 2019 REPORT 19(7) Etude de l’Institut de recherche de Crédit Suisse : “The CS Gender 3000 in 2019: the changing face of companies”

Executive management

2019Financial management

Business Unit management

Strategy & Investor Relations

Support functions

0% 10% 20% 30% 40% 50%

2016

SYCOMORE SELECTION RESPONSABLE 2019 REPORT20 SYCOMORE SELECTION

RESPONSABLE 2019 REPORT 21

Most of the companies we have engaged with say they are stepping up their efforts in order to improve gender equality at work. And we have, indeed, noted that a large number of companies have made some headway since our very first discussions. At end 2019, improvements were confirmed for 48% of the recommendations made in 2018, whether these concerned the company’s strategy, actions or reporting. Following this dialogue and having studied corporate practices, we identified three priority areas we wish to promote:

As parenthood still has a very unequal impact on the careers of men and women, policies aimed at supporting parents can provide an interesting lever for action for companies. Yet few companies currently guarantee paid parental leave beyond the legal minima. In France, from 2020, the Kering group played a pioneering role by offering all employees - men and women alike and in all the countries in which it operates - a paid parental leave of 14 weeks minimum;

Transparency on wage gaps and on the measures taken to identify and correct these gaps remains limited. Despite efforts made by regulatory bodies in Britain (Gender Pay Gap reporting regulations) and in France (the gender pay gap is one of 5 indicators within the French index for gender equality at work), very few of the companies concerned actually go further than the regulatory requirements by disclosing information covering all countries in which they operate.

The fight against sexual harassment seems to be one of the main blind spots as far as corporate gender equality policies are concerned in Europe, although the issue is increasingly present in the public debate. Few companies are prepared to mention specific initiatives, a trend that we have also observed on a larger scale: according to the survey conducted by Equileap in 2019, large companies that had implemented measures of this type were still in a minority (42%) in 2019.(8)

(8) Equileap, “Gender Equality Global report & ranking 2019”


During the course of our shareholder dialogue, we frequently challenge companies on the contribution of their business model to current societal and environmental issues.

As an example, we made four recommendations to Danone, to ensure the group provides better accountability on the nutritional quality of its products in relation to recommendations of the World Health Organisation, notably:

To publish a report on the divergences between Danone’s in-house nutritional recommendations (published in full) and the recommendations of the WHO, to enable the general public to appreciate the group’s high standards;

To explain how Danone’s nutrition objectives were determined during the unveiling of the group’s goals for 2030;

To add a glossary to the next publication of nutrition objectives for 2030, in order to clarify the different terminology used by Danone and the WHO;

To justify the large discrepancy in guidelines for added sugar in children’s cereal (≤ 2.5 g/100 kcal) compared to dairy and fruit-based products (≤ 6.25 g/100 kcal).

Part of our dialogues also take place during the IPOs of the companies in which we invest.

This was the case for NEXI, a payments systems company based in Italy, which went public in April 2019. As the quality of the information on social, environmental and governance-related issues we had on Nexi was still limited at the time of the IPO, we met the new Head

of Corporate Social Responsibility (CSR). During our discussions, we highlighted the importance of embedding CSR within the company’s strategy and NEXI confirmed that its first non-financial report was due for release in 2020.

Following our dialogue with NEXI, we are confident on the sustainable development quality of the company. Nevertheless, we did make several recommendations, including formalising the societal impact of the company’s mission and publishing its equity ratio, in order to monitor executive compensation amid a rather tense political context in Italy on matters of social justice and equity.

Other examples of our engagement initiatives, for example on the issues of technology and responsible taxation, are detailed in our Sycoway as an Investor report.

NUTRITION

IPO

More details on the lessons learnt from this engagement initiative are available in our dedicated report.

52%

29%

19%

IMPROVEMENTSOBSERVED

Target reached Partial progress No significant progress

22 23SYCOMORE SELECTION RESPONSABLE 2019 REPORT


We actively vote at the shareholders’ meetings (AGM) of all portfolio companies.

In 2019, we voted at 66 of the 67 AGMs for which Sycomore Sélection Responsable owned voting rights - a rate of 99%:

74%of AGMs with

at least one vote against or

an abstention

66shareholders’ meetings or

1272 resolutions

16%votes against or abstentions

15%votes

against/abstentions on the appointment

of a director

31%votes

against/abstentions on executive compensation

Our rejection ratio on the issue of executive remuneration was higher in 2019 (31% votes against in 2019, up from 28% in 2018). In France, 2019 was the second year for the mandatory and binding shareholder vote on director’s remuneration policies following the enforcement of the Sapin II Law in 2018. After a more intense dialogue on these issues since 2018, we applied our assessment criteria more strictly in 2019. Our main grounds for rejection were the following:

Insufficient transparency or standards on performance criteria (type of criteria, weighting, measurement and disclosure of success rate);

Long-term compensation plans that are excessively short-term, linked to performances measured over less than 3 years;

Lack of moderation (unjustified pay rises or amounts that exceed the social acceptability threshold as defined by Sycomore AM).

While the transparency of remuneration reports has tended to improve, we remain particularly attentive to the level of precision and the relevance of qualitative criteria, and in particular, of extra-financial criteria that are gradually entering the mainstream. The issue of moderation and societal acceptability of executive compensation remains a key issue in our dialogue with companies.

Our Voting Policy and our 2019 Proxy Voting Report are available on our website.

Our votes

AT SHAREHOLDERS’

Tomorrow’s

AGMOur ENGAGEMENT and VOTING at Shareholders’ Meetings03

meetings

shareholders can drive change

The full event can be viewed here: https://www.youtube.com/watch?v=u1nhlw--AGUAnd the excellent article written by Novethic can be viewed here: https://www.novethic.fr/actualite/entreprise-responsable/isr-rse/loi-pacte-bienvenue-a-l-ag-du-futur-146878.html

The shareholders’ meeting (AGM) is a key feature in the dialogue that takes place between a company and its stakeholders. The decisions that are taken at AGMs structure the life of the company: capital allocation, approval of accounts, members on the board of directors, executive compensation and sometimes, important changes to the articles of incorporation.

In February 2019, when the PACTE law - establishing the criteria allowing a company to qualify as “mission-driven” - was still under review at the Senate, Sycomore partnered up with the Prophil consultancy firm and media agency Usbek & Rica to rethink the “AGM of the Future”, a conference-show staging the shareholders’ meeting of a fictitious business and its transformation into a mission-driven company.

We wanted the conference to be interactive to ensure the AGM recovered its true purpose: a venue for debates on where the company is heading, with shareholders actively involved in allocating the value created by the entity and able to speak up on extra-financial issues, rather than merely rubber-stamping decisions.

Over 650 overnight shareholders and 14 actors-entrepreneurs took possession of the Theatre du Gymnase in Paris for the AGM of Mirliton, an imaginary listed company operating within the agri-food sector. The objective: to question the contribution of companies to the common good and the role of shareholders going forward. On the agenda: corporate transformations, reduction of food waste and the use of plastic, support to farming industries, protection of biodiversity, staff training, decent wages, employee shareholders, executive compensation… All key financial and extra-financial issues were covered in detail during this AGM.

And the three resolutions put before the shareholders for approval received broad support:

A formal corporate mission added to the articles of incorporation: “Fostering a taste for biodiversity in food while respecting our planet’s limits”: resolution approved by 84% of the shareholders.

Creation of a mission committee: resolution adopted by 79% of the shareholders.

Breakdown of the mission into 3 commitments: resolution adopted by 74% of the shareholders.

Engagement n°1

relatif aux conditions

de pérennité

de la mission :

Soumettre toute décision

d’investissement supérieure

à 20M€ à l’accord

du comité mission

qui évalue son adéquation

avec la mission

et en rend compte

annuellement

aux actionnaires.

Engagement n°2

relatif au soutien

à l’écosystème :

S’inscrire dans une relation

de long terme et de

co-construction avec

les partenaires

stratégiques afin que

chacun puisse vivre

dignement de son travail

et se préparer

aux mutations agricoles

et alimentaires.

Engagement n°3

relatif au partage

équitable et transparent

de la valeur :

Rémunérer

les collaborateurs,

les dirigeants et

les actionnaires selon

des règles et indicateurs

connus de tous, équitables

et en cohérence avec

la performance globale

de Mirliton.

LES RÉSOLUTIONS

À L ’ORDRE DU JOUR

En fin de séance, vous serez amené.es

à voter les résolutions suivantes :

RÉSOLUTION N°1

Formalisation

de la mission

(résolution du CA)

Modification de l’article 1

des statuts de Mirliton afin

d’y inclure la mission suivante :

« Donner le goût de la biodiversité

alimentaire, dans le respect

des limites de la planète ».

RÉSOLUTION N°2

Création

d’un comité mission

(résolution du CA)

Création d’un comité mission

composé de membres du conseil

d’administration ainsi que

de personnalités extérieures afin

de formaliser un programme

pluriannuel détaillant les objectifs

de la mission.

RÉSOLUTION N°3

Déclinaison de la mission en engagements

(résolution d’une coalition d’investisseurs ISR)

La mission de Mirliton prend forme à travers 3 engagements statutaires :

27 %DU CAPITAL DE MIRLITON

EST DÉTENU PAR LES

ACTIONNAIRES FAMILIAUX,

ET VOUS EN FAITES PARTIE.

Il existe deux fractions au sein

de la famille Irelec :

les visionnaires,

garants des valeurs de l’entreprise,

militants de la transformation

en société à mission

les conservateurs, qui attendent

le versement annuel

des dividendes pour le dépenser.

CHOISISSEZ VOTRE CAMP

ET VOTEZ EN CONSÉQUENCE !

D

ACET

COMMENT VOTER ?

Appuyer sur le bouton 1 (POUR), 2 (CONTRE) ou 3 (ABSTENTION)

correspondant à votre choix. Vous n’avez pas besoin de valider,

votre vote est pris en compte automatiquement.

Si vous changez d’avis, pas de panique : vous n’avez qu’à appuyer

de nouveau sur le bouton de votre choix !

https://www.youtube.com/watch?v=u1nhlw--AGU

https://www.novethic.fr/actualite/entreprise-responsable/isr-rse/loi-pacte-bienvenue-a-l-ag-du-futur

https://www.novethic.fr/actualite/entreprise-responsable/isr-rse/loi-pacte-bienvenue-a-l-ag-du-futur


Looking for IMPACTS4Sustainable Development

GOALS

25SYCOMORE SELECTION


The objective of Sycomore Sélection Responsable is to invest in companies offering solutions to major global social and environmental challenges, in keeping with the United Nations’ Sustainable Development Goals (SDGs), either through their products and services or their practices. To identify these issues, our investment process (through our societal and environmental contribution criteria) draws on the 17 SDGs adopted in 2015 by the United Nations and on the 169 targets that make up the SDGs.

We have shown below the main SDGs to which portfolio companies are most exposed according to our analysis and to which they are most likely to contribute. The contributions that have been identified refer specifically to a number of targets rather than to the SDG taken as a whole, as explained below. This assessment covers the SDGs to which companies are exposed through the products and services they offer. Several companies also contribute towards SDGs through their practices, but are not included in the image opposite.

If a company can contribute towards several SDGs, we select the goal that is most relevant to our analysis. This does not exclude the fact that a company may be exposed simultaneously to several SDGs and targets, on one or more segments. Moreover, some business units within a company owned by the portfolio may not be clearly exposed to SDGs or may display negative contributions.

EXPOSURE AND CONTRIBUTION

Source: Sycomore AM, data as of 31.12.2019, as a percentage of net assets invested in equities.

No exposition or clear contribution

0% 5% 10% 15% 20% 25%

22%

19%

11%

8%

15%

15%

10%

(SDGs)


Looking for IMPACTS4

Since its creation several years ago, we have been following the work conducted by the Impact Management Project (IMP), a global forum that brings together a Practitioner Community of over 2,000 organisations to debate and find consensus (norms) on impact management techniques.

TTOMRA (SPICE rating: 3.8/5; NEC +82%) is a Norwegian company specialised in automated systems for the collection and recycling of aluminum cans and glass or plastic bottles. The company has set up 84,000 machines in over 60 countries which can collect over 40 billion containers per year, equivalent to 2% of the beverage containers produced every year throughout the world(9). Although plastic requires hundreds of years to decompose, 32% of all plastic containers produced every year are dumped into the environment and 8 million tons of plastic find their way into the world’s oceans, disrupting marine life. The need for systems designed to collect this waste is increasing dramatically. In addition to the collection process,

the systems provided by TOMRA help boost the circular economy and the re-use of recycled materials for the production of new beverage containers. TOMRA effectively offers reuse and recycling solutions in order to reinject these materials back into the industrial cycle.

Through its collection business, TOMRA contributes to goal 14.1 of the United Nations’ SDGs: “by 2025, prevent and significantly reduce marine pollution of all kinds, particularly from land-based activities, including marine debris and nutrient pollution”.

The main stakeholder to benefit from the impacts generated by TOMRA is the environment – a vulnerable and underserved stakeholder. In a more or less direct manner, living creatures also stand to gain from the company’s products and services, throughout the world, as TOMRA operates in over 60 countries and displays a global footprint.

A detailed matrix in Excel format is available for companies and investors wishing to measure their impact. This tool helps lay down a number of considerations in a formal way, while challenging companies on their practices and initiatives.

By relying solely on the public reports published by a listed company, the information that can be collected is the following.

A KEY SOURCE FOR REFLECTING ON IMPACT

THE POSITIVE IMPACTS FROM COLLECTING AND REUSING WASTE

What Is the outcome positive or negative? How important are the outcomes to the people (or planet) that are experiencing them?

Who Who experiences the outcome? How underserved are the affected stakeholders in rela-tion to the outcome?

How much How many people are affected by this outcome? Will it last in time? Does it occur fast or in time?

+ Contribution Would this change likely have happened anyway?

Risk What is the risk to people and planet that the impact does not occur as expected?

What What - or the type of impact: what outcome is expected (positive or negative impact) and how important is it for the people (or planet) that will experience it?

Who Who – or the people (or planet) due to benefit from this outcome: characteristics, needs, weak points? Are their needs already served by the existing offer ?

Source: Impact Management Project (IMP)


RESPONSABLE 2019 REPORT(9) https://www.theguardian.com/environment/2019/may/09/runaway-consumption-2tn-drinks-containers-being-used-every-year

Impact

MANAGEMENT PROJECTIMP

https://www.theguardian.com/environment/2019/may/09/runaway-consumption-2tn-drinks-containers-being-used-every-year



From a climate perspective, the group estimates that its collection solutions prevented 4 million tons of CO2e in 2019; this is equivalent to the emissions produced every year by 3 million cars each covering 10,000 km. By adding the group’s waste transport and processing solutions in the United States and in Australia, as well as its sorting and recycling businesses, almost 17 million tons of CO2e were avoided in 2019. Using recycled rather than virgin plastic can help reduce the associated energy consumption by 79 to 88% (10).

We appreciate the fact that TOMRA’s positive impact on the environment is virtually immediate and durable in time. Furthermore, the group’s use of sensor-based technology is an important differentiating factor that improves the effectiveness of the sorting process during collection and therefore, the efficiency of the reuse and recycling systems. We are convinced that these factors increase the appeal of the brand and the resilience of the company’s business model, and strengthen its competitive positioning. Deep changes will have to be made to our production and consumer habits if we are to successfully curtail climate change and protect our ecosystems. Although the impact of TOMRA’s business remains very modest (the volumes collected every year by TOMRA account for 2% of the containers produced annually), the positive impact of the collection lasts in time and occurs almost with immediate effect. The positive impacts on the environment are diffuse and therefore, it is not possible to determine a precise number of beneficiaries.

Compared to other recycling companies, the sensor technology developed and used by TOMRA is a major differentiating factor which boosts the efficiency of sorting during the collection process, and consequently, the efficiency of the reuse and recycling systems. Considering TOMRA’s leadership in this area, with a market share estimated at 75% throughout the world, we believe that change without the company’s involvement would have been low.

Beyond the positive impact of its products and services, the positive lobbying conducted by TOMRA with government and non-governmental bodies also fosters positive environmental change. For example, TOMRA is striving to ensure that the collection rate for recycling increases from 14% today to 40% in 2030 and that 30% of plastics are reused in a closed loop – considering that only 2% of plastic containers are currently reused for similar purposes(11).

As is the case with most companies, TOMRA is exposed to several risks that can weigh on its capacity to deliver a positive impact on the environment.

In particular, the company faces high external risks as the installation of collection machines depends, in many countries, on government support and their ability to urge economic players to set up reverse vending machines.

How much

How much - or the scale of the impact: is the change meaningful or marginal? How many people are af-fected by this impact? Does it last in time? Does it occur fast or over time?

+ Contribution The “contribution”: to what extent can the change expe-rienced by the stakeholder be attributed to the company and to the business that aims to generate this impact?

Risk Risk: what is the risk that the impact generated? Is it different from the impact that was expected?

(10) Association of Plastic Recyclers. 29SYCOMORE SELECTION

RESPONSABLE 2019 REPORT(11) Rethinking the Future of Plastics – Ellen MacArthur Foundation.



One of the objectives of Sycomore Sélection Responsable is to contribute positively to the environmental transition. As discussed in chapter 2, a significant share of the portfolio displays a net environmental contribution (NEC) above 0%, meaning that the consolidated NEC at portfolio level stands at 11% (vs. -1% for the Eurostoxx Total Return).

To go one step further and explore alignment – i.e. the compatibility between investments made by Sycomore Sélection Responsable and the temperature objectives of the Paris Agreement, we have attempted to assess – with help from the I Care & Consult and Science Based Targets initiative (SBTi)(12) – the climate performance (past, present and future) of each portfolio company, in terms of carbon intensity (for instance expressed in tCO2eq per functional unit) and to compare this performance with what it should be to guarantee a low-carbon transition, using different scenarios.

Methodology

In order to calculate the temperature trajectory for our portfolio, we have mainly used the SB2A (Science-Based 2°C Alignement) methodology developed by I Care & Consult, a historic partner of the NEC. The main steps that enable us to determine an alignment trajectory are the following:

Intensity trajectories per sector and region

(12) The initiative was created in 2015 by the CDP (former Carbon Disclosure Project), WRI (World Resources Institute) and the WWF. It encourages companies to back up their greenhouse gas emission reduction targets with climate-related scientific data, which means an alignment with a 2°C trajectory. In June 2020, almost 400 companies saw their objectives approved by the initiative and almost 1,000 took part in the initiative. For more information: http://sciencebasedtargets.org/

Carbon intensity trajectory



CLIMATEAlignment metrics and temperature projections

2°C Benchmark

Performance climat entreprise

2°C Benchmark Indicateur de température

Indicateur d’alignement

Physical carbon intensity (tCO2eq/activity metric)

Product/service mix

Current year, past years and future trend

Performance climat entreprise

Publication + modelisation

ICare & Consult

Company climate performance

Company climate performance

2° benchmark

2° benchmark Alignment indicator Temperature metric

http://sciencebasedtargets.org/


The SB2A method measures a company’s alignment with key low-carbon scenarios, based on its past (since 2010) and future climate performances (notably using targets approved by the SBTi) and on how these performances compare with the decarbonization trajectories observed within its industry.

This Sectoral Decarbonization Approach (or SDA) enables us to allocate a carbon budget for each sector, based on the 2°C sector scenarios (Energy Technology Perspectives 2017) developed by the International Energy Agency (IEA) – i.e. the 2°C (2DS) scenario and the scenario aiming for 1,75°C (Beyond 2°C or B2DS)(13). Based on this sector approach, enhanced with new sector analyses conducted by I Care & Consult, SB2A can take into account all sectors, while differentiating between companies. The method then converts the company’s performance gap - compared to what it should be in a low-carbon scenario (always in relation to its industry) - into an “equivalent temperature”. A weighted average of temperature forecasts in 2100 for all companies, according to their weight in the portfolio, is then conducted in order to generate a temperature trajectory for the entire fund.

How do we apply the SB2A methodology to the Sycomore Sélection Responsable fund?

At the end of 2019, the SB2A methodology could only cover 20% of Sycomore Sélection Responsable’s net assets. We therefore supplemented our analysis with alignments based on targets approved by the SBTi, which incidentally, are used by SB2A to work out the future climate-performance of a company. This approach enabled us to cover a further 24% of net assets, to reach a coverage ratio of 44%.

This first study has revealed that 44% of the portfolio is duly aligned with a global warming target under 2°C, i.e. a forecast temperature of 1,97°C in 2100.

Outlook

By continuing with our engagement and analysis efforts, we hope to be able to provide an alignment outcome and a forecast temperature in 2100 for the entire portfolio. Furthermore, we are currently working on developing other types of alignment methodologies based on our NEC metric.

We shall also strive to publish portfolio companies’ exposure to sustainable businesses(14) in accordance with the European taxonomy.



(13) The Energy Technology Perspectives 2017 (ETP 2017) report presents three trajectories for the development of the energy sector by 2060 and lays the foundations for the two scenarios mentioned above, and is available here: https://www.iea.org/reports/energy-technology- perspectives-2017

(14) To read the official publication on European taxonomy for sustainable finance: https://ec.europa.eu/info/publications/ sustainable-finance-teg-taxonomy_en

< 2°C

Impact on temperature of cumulated carbon budget overshoot

Historical and future alignment estimates

Carbon budget overshoot ratio

Indicateur d’alignement

Indicateur de température

Source: I Care & Consult, June 2020

Alignment indicator

Temperature metric

Carbon budget ratioCumulated GHG emissions 2010-2050

vs. carbon budget

Correlation with various scenarii AIE t GES vs. °C

https://www.iea.org/reports/energy-technology- perspectives-2017

https://www.iea.org/reports/energy-technology- perspectives-2017

https://ec.europa.eu/info/publications/ sustainable-finance-teg-taxonomy_en

https://ec.europa.eu/info/publications/ sustainable-finance-teg-taxonomy_en


Appendix 1SUSTAINABLE DEVELOPMENT GOALS (SDG):EXPOSURE AND CONTRIBUTIONS

SDG TARGETS

Portfolio companies whose products and services contribute

positively to reaching a target

8.2 Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors.

ASML HOLDING NV

ATOS ORIGIN

CANCOM IT SYSTEME AG

CAP GEMINI

DASSAULT SYSTEMES

IMCD

SAP

TEAM VIEWER

WORLDLINE

3.3 By 2030, end the epidemics of AIDS, tuberculosis, malaria and neglected tropical diseases and combat hepatitis, water-borne diseases and other communicable diseases.

3.4 By 2030, reduce by one third premature mortality from non-communicable diseases through prevention and treatment and promote mental health and well-being.

3.8 Achieve universal health coverage, including financial risk protection, access to quality essential health-care services and access to safe, effective, quality and affordable essential medicines and vaccines for all.

ALLIANZ

AXA

BIOCARTIS NV

ESSILORLUXOTTICA

GRIFOLS B SHARES

KORIAN MEDICA

SANOFI-AVENTIS

TECHNOGYM

7.1 By 2030, ensure universal access to affordable, reliable and modern energy services.

7.2 By 2030, increase substantially the share of renewable energy in the global energy mix.

7.3 By 2030, double the global rate of improvement in energy efficiency.

ENGIE

ORSTED

SAINT GOBAIN

SCHNEIDER ELECTRIC

SPIE

SDG TARGETS

Portfolio companies whose products and services contribute

positively to reaching a target

9.1 Develop quality, reliable, sustainable and resilient infrastructure, including regional and transborder infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all .

9.4 By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes, with all countries taking action in accordance with their respective capabilities.

9.C Significantly increase access to information and communications technology and strive to provide universal and affordable access to the Internet in least developed countries by 2020.

CELLNEX TELECOM

MICHELIN

NEXANS

PRYSMIAN

VODAFONE GROUP

11.2 By 2030, provide access to safe, affordable, accessible and sustainable transport systems for all, improving road safety, notably by expanding public transport, with special attention to the needs of those in vulnerable situations, women, children, persons with disabilities and older persons .

11.6 By 2030, reduce the adverse per capita environmental impact of cities, including by paying special attention to air quality and municipal and other waste management.

ALSTOM

KINGSPAN GROUP

STADLER

UMICORE

OTHERS SGD2.4 By 2030, ensure sustainable food production systems

and implement resilient agricultural practices that increase productivity and production, that help maintain ecosystems, that strengthen capacity for adaptation to climate change, extreme weather, drought, flooding and other disasters and that progressively improve land and soil quality.

6.2 By 2030, achieve access to adequate and equitable sanitation and hygiene for all and end open defecation, paying special attention to the needs of women and girls and those in vulnerable situations.

12.2 By 2030, achieve the sustainable management and efficient use of natural resources.

14.1 By 2025, prevent and significantly reduce marine pollution of all kinds, in particular from land-based activities, including marine debris and nutrient pollution .

17.1 Strengthen domestic resource mobilization, including through international support to developing countries, to improve domestic capacity for tax and other revenue collection .

DSM NV

NEXI SPA

ONTEX

SIG COMBIBLOC

SMURFIT KAPPA

TOMRA SYSTEMS

EXPOSURE BUT EXTENT OF CONTRIBUTION DIFFICULT TO ESTABLISH

ADIDAS

KERRY GROUP

SYMRISE

UNILEVER NV

NO CLEAR CONTRIBUTION OR EXPOSURE

AMADEUSB ET M VALUE RETAILB/S GROUP

L OREAL

SEB



14 AVENUE HOCHE - 75008 PARIS - WWW.SYCOMORE-AM.COMSYCOMORE SELECTION RESPONSABLE 2019 REPORT

Appendix 2LIST OF COMPANIES WITHIN THE SYCOMORE SÉLECTION RESPONSABLE FUND TO WHICH WE RECOMMENDED IMPROVEMENTS IN 2019

Entreprises Society & Suppliers People Investors Clients Environment

Amadeus 1 AMG 5 1Atos Origin 1 1

Brenntag 1

Cap gemini 2

Danone 5

Dassault Systèmes 1 3 3

DSM 1

Engie 1 1 5

EssilorLuxottica 1

Eurofins Scientific 1

Fresenius Medical Care 3

Fresenius SE 1 1

Ingenico 2

Interxion Holding 1

Kerry 1 1 1

Korian 1 1 1 2

Maisons du Monde 2 2 1 1

Michelin 1 1 1

Ontex 1 1

Prysmian 2

Qiagen 5 3

Sanofi 1

SAP 1

Schneider 1

Seb 3

Smiths Group 1

Spie 2

Ubisoft 1

Umicore 1 1 1

36

https://www.sycomore-am.com/

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