Responsible asset management today is impossible without ESG. Among these environmental, social and governance criteria, the social dimension should be one of the priorities of investors today, as are the other two, while the Covid-19 pandemic has highlighted the essential nature of many professions. , especially in terms of wages.
The war in Ukraine also underscores the need for a more ambitious social policy aimed at the populations affected by the conflict, particularly in France, where rising raw material and energy prices will strain household budgets. in difficulty.
Thus, asset managers must integrate social and social issues into the basis of their non-financial analysis of issuers. Investing in companies that take these concerns into account and aim to achieve a fairer society are not secondary, on the contrary.
While environmental taxonomy is being introduced on a European scale, we believe it is time to establish a social taxonomy. A more precise regulatory framework, common to all, is indeed important for directing financial flows to activities and companies that respect human rights and promote employment, well-being, health, diversity, prevention, accessibility or mobility for all.
An indicator of respect for human rights
The desire to make Piazza Piazza a benchmark for climate change (Perrier Report) must also be accompanied by initiatives to promote human rights and social progress. In parallel with efforts to address climate change, social issues must return to the focus of asset managers. In this context, there is currently a lack of Greenfin-type labels on social issues.
Investing in the social takes more into account the criteria of employment, remuneration or equality between men and women in each company. But it would also be appropriate to introduce an indicator of companies’ respect for human rights and employee diversity.
In addition to taking into account indicators that should help investors choose stocks, each shareholder should also play a role in encouraging companies to improve their social practices and impact on society. The role of the asset manager should be limited not only to investing in the company, but also supporting them in their transformation.
For sustainable business
Thus, it is more a question of defining opportunities, awareness of society as a source of opportunities, rather than as a constraint. In fact, companies that create jobs or invest in the well-being and health of their employees are also the ones most likely to attract the best talent. The company plays a role in relation to society, which goes far beyond just making a profit.
Fair remuneration for employees and shareholders, limiting the pay gap within the company between the highest and lowest incomes, and taking into account the well-being and health of all employees are essential and indicative criteria for the company’s social ambitions. In the long run, these are the companies that will undoubtedly be the most sustainable and financially successful.