"ESG Prioritization Isn't Secondary"
In the ever-evolving landscape of investment, Comgest, an independent asset manager with 27 billion euros under management, is leading the charge towards sustainable growth. The company, known for its long-term, quality, and growth-oriented investment style, has integrated Environmental, Social, and Governance (ESG) research directly into its investment process.
Comgest's specific ESG criteria focus on assessing the "quality" and sustainability of companies. This is achieved through monitoring 14 mandatory principal adverse impact indicators as per EU regulation 2022/1288, plus two additional optional indicators chosen by Comgest. These indicators are used to evaluate companies' sustainability impacts [1].
The firm also applies targeted exclusion policies for companies involved in activities with significant sustainability risks or adverse impacts. Moreover, they assess companies on sustainability factors that influence long-term financial returns and growth potential [1].
Comgest's commitment to sustainability extends beyond investment strategies. The company is a signatory to the Net Zero Asset Managers initiative (NZAM) since 2022, focusing on companies' greenhouse gas emissions and guiding their approach towards climate-related risks and avoided emissions [1].
In terms of engagement with companies, Comgest employs stewardship activities such as voting at annual general meetings to influence company policies. They also initiate proactive dialogue with investee companies on specific ESG issues to encourage better sustainability practices. Additionally, they collaborate with partners and consultants to develop better data and standards on ESG metrics [1].
Even in a politically charged environment, demand for clean energy strategies or environmentally sustainable business models remains robust among institutional investors. In response, Comgest's so-called ESG Plus funds maintain far-reaching exclusions [1].
The European Securities and Markets Authority has implemented new rules for the use of terms like "sustainable" or "ESG" in fund product names. Comgest, recognising the importance of transparency, has revised its group-wide exclusion policy regarding conventional weapons, aligning with changes in EU standards [1].
ESG integration is not static; it evolves with regulatory changes, as evident in the current debate surrounding defense stocks. Comgest sees the Corporate Sustainability Reporting Directive (CSRD) as an opportunity, as they have already documented their sustainability practices [1].
The CSRD mandates ESG reporting for large and medium-sized companies. Under the new rules, at least 80% of a labeled fund's assets must demonstrably meet sustainability criteria [1]. Comgest primarily relies on its own analyses, direct company contact, and independent information review for ESG evaluations, rather than relying solely on external ESG ratings [1].
Catriona Marshall, Head of Sustainable Investment at Comgest, welcomes the new ESMA guidelines, stating they bring clarity for investors. Many defense companies fail to meet these new sustainability standards, according to Comgest [1].
In conclusion, Comgest combines rigorous ESG data monitoring, exclusion policies, and active ownership practices (voting and dialogue) to ensure their investments align with their ESG principles and support sustainable growth. The company's approach prioritizes open, confident communication and building resilient relationships, rather than just making demands [1].
[1] Comgest's Principal Adverse Sustainability Impacts Statement dated June 2025.
- Recognizing the growing emphasis on environmental concerns, Comgest invests in companies that show strong commitment to sustainability through their ESG Plus funds, with far-reaching exclusions of companies engaged in activities with significant sustainability risks.
- As a signatory to the Net Zero Asset Managers initiative, Comgest focuses on companies' greenhouse gas emissions and guides their approach towards climate-related risks and avoided emissions, aligning its strategies with the fight against climate-change.
- To ensure that investments align with their ESG principles, Comgest combines rigorous ESG data monitoring, exclusion policies, and active ownership practices such as voting and proactive dialogue with investee companies on ESG issues, building resilient relationships that prioritize open and confident communication.
