Exclusion: what does not belong in our portfolios
Exclusion concerns companies that Cadelam, the group's fund manager, does not under any circumstances include in its portfolios because they do not correspond to our sustainability values.
These are companies that are involved in the production of controversial weapons, such as cluster munitions and anti-personnel mines. The Financial Services & Markets Authority (FSMA) and the Belgian Asset Managers Association (BEAMA) are closely monitoring the compliance of banks with this exclusion requirement.
"An exclusion policy serves to filter investments and to monitor existing investments."
You will also never find companies that violate our environmental, social and governance (ESG) standards in the portfolios. Examples of violators in the field of ESG are companies that do not comply with laws on pollution, humane working conditions or the correct functioning and independence of the board of directors.
How does such an exclusion process work?
Leading external organisations, including the Norwegian Pension Fund, draw up an exclusion list on the basis of a thorough sustainability study. If a majority of these reference organisations discover ESG infringements, Cadelam will not invest in the shares or bonds of the company or government in question. If only a minority of people have concerns, Cadelam's fund managers will analyse each case individually. Sustainalytics, our partner in ESG integration, provides Cadelam with specialised data that enables them to make the right assessment. The exclusion list is also used at a later stage to monitor existing investments.