Understanding Responsible Investment #7 - How do you define your profile as a responsible investor?

Dorothée Chapuis: Hello everyone and welcome to the seventh episode of our "Understanding Responsible Investment" podcasts series. I am Dorothée Chapuis, Head of CSR for Société Générale Private Banking Luxembourg, Monaco and Switzerland, and I am with Jean-Marie Laurent, investment consultant at Société Générale Private Banking France. 

Dorothée Chapuis: Jean-Marie, we understood that the offer of positive and sustainable investments was broad and composed of products that could meet a variety of investor expectations. How do you help clients make sense of their investments?

Frédéric-Charles Bois: Let me begin by reminding you that it seems obvious that the sustainable approach begins with a more traditional questioning process that allows us to understand and determine the investor's profile and objectives. Before talking about sustainability, we must check with the client to determine his appetite for the risk of capital loss, his understanding of the various asset classes and his investment horizon. Only once the investor profile has been determined can the dialogue on sustainable and positive investment begin. The first thing to consider is the degree of sustainability that the client wishes to integrate into his investments: when making an investment choice, are societal considerations very, medium or little important to him? Not all clients are equally sensitive to sustainability issues. Not all of them have yet considered changing the way they invest, as they may have already done in the way they consume or travel. As a trusted financial third party, we want to support them according to their sensitivity and expectations.

Frédéric-Charles Bois: Before making you an investment proposal, I must first understand your expectations in terms of sustainability. Which area affects you the most? Are you particularly interested in subjects that affect the biosphere, such as the environment? The preservation of ecosystems? Or more social subjects such as access to education, the theme of equality between men and women, or the inclusion of the most disadvantaged? Or lastly, are you more particularly sensitive to a responsible economy that includes infrastructures, renewable energies, or sustainable cities? To help you, we can rely on the 17 sustainable development objectives established by the United Nations. Another point that we will be able to see together is whether you have activities or criteria that you wish to exclude from your portfolio beyond the exclusions that the bank already practices and that you have detailed, I believe, in podcast #4, on the different management approaches. Our proposals will be adapted according to the activities you wish to exclude and the amounts you wish to invest. At Société Générale Private Banking, we have also set up a questionnaire called "My Sustainable Future" which will enable you to assess yourself and help you determine your profile. Finally, of course, I will ask you what level of delegation you would like to set up. Investing responsibly requires expertise, access to companies' extra-financial data, monitoring of risks and reputational events, and a high level of responsiveness. If you opt for a delegated SRI management solution, you will have all advantages at your fingertips with the added benefit of specific reporting that will allow you to understand how your portfolio is performing on the three ESG pillars of Environment, Social and Governance.

Dorothée Chapuis: Very well, I understand. So, let's say that I am a well-informed investor who accepts to take a bit of risk in capital. What can you offer me?

Dorothée Chapuis:  Indeed. Thank you, Jean-Marie, for this comprehensive overview. An important component of the proposals lies in the structured products: in the next podcast, we propose to see how these products contribute to financing a more sustainable economy. Thank you and see you soon!

This podcast is part of a series of episodes proposed by Societe Generale Private Banking to understand responsible investment. It is available on the Spotify and Apple Podcast streaming platforms via the "#Private Talk by Societe Generale Private Banking" program and on our website www.privatebanking.societegenerale.com. Feel free to subscribe to be notified when the next episode is released and to spread the word.

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