corporate social responsibility report creating a sustainable … -csr report.pdf · 2018-04-20 ·...

Creating a sustainable value proposition at RAM Active Investments

Corporate Social Responsibility Report

January 2018

Table of contents

Section 1: Introduction

Section 2: Sustainability Approach

Section 3: Responsible Investing

Section 4: Environment

Section 5: Social & Governance

1

3

6

10

13

IntroductionSection 1

Corporate Social Responsibility Report, January 2018

Who we are

Key Facts

01 Introduction

About This Report

This is our first CSR Report. It covers the progress we have achieved since January 1st 2016. The purpose of this report is to outline our approach, objectives and progress. We welcome your comments and we would be happy to engage in discussions with our stakeholders, in order to provide feedback for improvement purposes.

This report covers four key areas: Responsible Investing, Environment, Social, and Governance (as per the graphic, presented as our Sustainability Strategy). With this interactive PDF available for download, we hope you gain a useful understanding of our practices. This report predominantly focuses on Switzerland, without overlooking important information if relevant in other geographic areas where we are currently present (i.e. Luxembourg).

Social SRI Governan

ce

Env

iro

nment

SustainabilityStrategy

FOUNDED IN

2007OFFICES

3 officesaccross Europe

EMPLOYEES

40+FIRM AUM

5.0bn US$as of end of December 2017

RAM Active Investments is an asset management company dedicated to institutional and professional clients.

We are an active specialist and alternative asset manager with the mission to deliver high risk-adjusted returns, diversification benefits, and liquid products and solutions to our investors. RAM takes a long-term perspective and keeps in mind the interests of all our stakeholders.


Message from our Chief Executive Officer

To respond effectively, efforts need to be continuous across all areas, whether it is in relation to our investments strategies or our approach towards day to day operations. We believe it is only through this constant endeavour that we can achieve sustainable growth.

This report marks RAM’s first attempt in outlining the policies, processes and controls we have been put in place across the different fronts. Furthermore, our employees receive yearly training to gain awareness of the latest ecological problematics and best practices.

RAM has also joined forces with leading organizations in responsible investment, namely the United Nations-supported

02 Introduction

At RAM, we recognize the importance of conducting our activities in a responsible manner, as client and stakeholders needs evolve within the increasingly complex environment we operate in.

Thomas de Saint-Seine CEO and Founding Partner

Our Engagements

We aspire to a transversal integration of sustainability, favouring a broad spectrum method and averting anecdotal, intermittent actions. We believe in building strong bases by implementing basic day-to-day processes, while never losing sight of the overall view and developing bigger CSR related projects to align with our longer term objectives. Our goal is to consistently evolve and progress in a dynamic manner, as we trust that true sustainability can only be achieved through continuous effort.

PRI (Principles for Responsible Investment), endorsing some of their projects as well as participating to their associated events, in hope to bring added value to the development of a sustainable financial community in Switzerland, and influence across Europe.

Sustainability ApproachSection 2


Sustainability Approach

We emphasize the importance of listening to and communicating with our stakeholders and strive to incorporate their expectations in our decision making process. We take into account our company’s sphere of influence and strive to promote social responsibility accordingly.

04 Sustainability Approach

Performance & Alignment

Code of Conduct, CSR Officer, and

RAM Group Policies

Our Values & Our Vision

Corporate Social Responsibility Report, January 2018 05 Sustainability Approach

Relationship with our Stakeholders

EmployeesProvide a safe, healthy work environment, disalow any form of discrimination, promote talent development, professional integration, equality and fair pay.

Local Authorities & Public InstitutionsComply with laws and regulations, conduct our business in a transparent and responsible manner.

Local CommunityContribute to the development of local and national economy, conduct our activities in a responsible manner, minimize our impact while complying with laws and regulations.

CounterpartiesEnsure traceability, have a strict compliance, anti-bribery and money-laundering policy, guarantee sustainable growth while minimizing our environmental and social impact.

Supplier and SubcontractorsFavor local and national suppliers and subcontractors who offer traceability of their products, have a CSR Policy implemented and conduct their activities in a transparent and responsible manner.

Shareholders, investors and financial institutionsEffective dialogue and timely information sharing, sustainable growth, comply with laws and regulations.

Service ProvidersFavor local and national service providers who have a CSR Policy implemented and conduct their activities in a transparent and responsible manner.

Sphere of influence

Responsible InvestmentSection 3

Corporate Social Responsibility Report, January 2018 7 Responsible Investment

Responsible Investment

RAM’s policy for responsible investment sets out the investment beliefs, the guidelines, and the approach for us to consider and incorporate corporate governance, environmental, and social factors into our investment process and strategies, covering both equities and fixed income.

At RAM we always aim to invest responsibly as we execute our investment strategies. We set clear expectations for our portfolio managers, supporting them by providing both guidance and tools to help them meet the firm’s expectations. We are also committed to improving our own sustainability practices as it relates to our business operations. As an example, we seek to minimize our impact on the environment, fulfil our social responsibility, and promote best corporate governance practices.

Responsible Investment Belief

ESG Research

At RAM, we believe that corporate responsibility should be part of everything we do, from managing investment portfolios for clients investment management to running our own business. Hence, responsible investment is part of this belief. As an institutional investor, our fiduciary role is always to act in the best

interest of our beneficiaries and to help our clients harness the potential of markets to reach their respective goals. We believe that the proper attention to corporate governance, environmental and social matters is key to our long-term value creation, in line with our fundamental approach to investing.

As a UN PRI signatories/CDP Member, we have always considered the ethical impact which underpin our investments. Historically, as the availability of data was relatively scarce, the reflection of our ESG philosophy was expressed through exclusionary screening. This consisted of avoiding stocks which failed to meet our moral and ethical values.

In recent years, we have witnessed a proliferation of ESG data reported by companies together with their financial statements or by third parties rating agencies. This has enabled our Quantitative Research Team to build their expertise in systematic ESG investing,

developing a deep understanding of the fundamental mechanics behind best practices. We now target a full ESG integration, i.e. a systematic and explicit inclusion of ESG risks and opportunities in our quantitative engines.

As the data availability increases, in term of stock coverage and number of fields, and as the data reporting becomes increasingly standardized, our research team will continue their efforts. We aim to position RAM-AI as a leading player in ESG systematic investing, not only through innovative product offering, but also through knowledge transfer to the financial & academic communities.

RAM Active Investments (RAM) is committed to responsible investment. We see it as an integral part of our business in line with our goal to be a responsible company.

Corporate Social Responsibility Report, January 2018 8 Responsible Investment

Responsible Investment Guidelines

We take a long-term perspective and keep in mind the interests of all our stakeholders. Therefore, the responsible investment guidelines serve to support not only our mission but also our investors and stakeholders expectations.

RAM’s responsible investment guidelines are framed within the UN-backed Principles for Responsible Investment, which we signed in 2015. RAM is also a member of Swiss Sustainable Finance (SSF) that aims to strengthen the position of Switzerland in the global marketplace for sustainable finance by informing, educating and catalyzing growth. Our guidelines are set out to define and support the incorporation of corporate governance, environmental and social matters as well the adherence to client-specific requirements, as outlined below:

Uphold strategic approach through Responsible Investment Committee:

• Defines RAM’s approach and best ways for implementation, decides and reviews RAM’s list of stocks that are monitored or excluded, defines engagement targets.

• Teamed-up by RAM’s committed senior management and business functions.

Analyze and incorporate ESG Data and Metrics:

• ESG data and metrics are used to assess and monitor companies, and to measure performance relative to index on RAM’s major funds. As an example, RAM analyzes climate data to filter out stocks with excessive carbon footprint from its fund investment universe.

RAM is an active specialist and alternative asset manager with the mission to deliver high risk-adjusted returns, diversification benefits, and liquid products and solutions to our investors.

Apply Screening Criteria for Companies. Screening criteria are applied through a systematic monitoring of companies to identify holdings for further assessment, engagement, and/or exclusion, focusing mainly on the following:

• Involved in illegal or controversial weapons such as anti-personnel mines and cluster munitions.

• Suspected of accounting fraud, corruption, lack of minority shareholder protection.

• Disregard international norms for labor rights including child labor, such as the core ILO conventions.

• Violate human rights.

• Cause severe environmental damage.

• Exposed to sanctions, such as the OFAC list.

Exercise Active Shareholder Stewardship

• RAM has started a process to perform direct engagement and take part in collaborative engagement.

• RAM applies a voting policy to the full range of its Collective Investment Schemes (CIS) or Funds to which RAM acts as investment manager or delegated investment manager.

EnvironmentSection 4


Approach

At RAM, we recognize that our business will inevitably have a direct or indirect impact on the environment and that we must assume this responsibility.

Therefore, we are fully committed to assess and minimize these impacts in order to preserve the planet’s natural resources and biodiversity, as well as reducing CO2 emissions and pollution in general. We aim at building an integrated approach by taking into consideration all environmental subject matters in our day-to-day decision making.

With this continuous effort, over time, we hope to achieve positive progress and hopefully, through effective communication with our stakeholders, contribute to the performance improvement of our sphere of influence as well.

10 Environment

Waste Production & Management

Our primary objective is to minimize our waste production, notably by favouring reusable material and avoiding single-use items, such as plastic cutlery.

During the second quarter of 2017, for example, we put in place a new set of branded ceramic coffee mugs as an alternative to paper cups, which create an important amount of unnecessary waste.

Subsequently, our waste management strategy rests on the implementation of recycling facilities on all our sites, targeted on paper and PET. We have also implemented an additional collect point at the end of 2017, to allow recycling of glass, aluminum and batteries. Considering recent studies that have shown that about one third of our bin’s content consists of organic waste, and

that it’s estimated that around 1.3 billion tonnes of food is lost or wasted every year, we feel truly involved in its valorisation, as this process embodies sustainability at its finest. Our next mid-term objective regarding waste management is to implement an organic waste disposal on our facilities.

As waste production results in CO2 emissions (transport / incineration) and represents an important financial investment as well as a significant mobilization of resources, we believe it’s an important issue and are committed to reducing our impact.

Corporate Social Responsibility Report, January 2018 11 Environment

Resource Use

Considering the nature of our business, we rely on a rather important administrative structure, which entails a considerable use of paper. In 2016 at RAM Geneva, we have an estimated paper consumption of 206,500 sheets, representing approximately 1,500KG per year. We have put in place different actions in order to reduce our paper consumption and waste:

Awareness SessionsWe organize CSR Training on a recurring basis for our employees, to raise awareness on a variety of environmental issues whilst presenting different solutions to help improve the situation on a day-to-day basis. As we wish to engage with our employees, these sessions are also an opportunity to interact and gather suggestions on how we can progress as a company from a CSR perspective.

Printer Set-upWe have enforced an automatic set-up on all our printers, with double-sided black & white.

Digital MediumsWe have supplied a set of iPads, equipped with a straightforward cloud platform supporting automatic document sharing, in order to allow employees to virtually access presentations needed for internal and external meetings.

Printing TechnologyDuring the second quarter of 2017, we have upgraded our printing equipment (Geneva & Zurich Sites), switching to a badging system designed to release each print job, and provide us with clearer statistics in terms of printing data going forward. Our primary mid-term objective is to set formal improvement goals, as well as exclusively purchasing carbon neutral paper and provide our Luxembourg Office with the same equipment.

Corporate Social Responsibility Report, January 2018 12 Environment

Transportation PracticesTravelling abroad constitutes a rather important part of our professional domain. It poses a problem not only regarding CO2 emissions, but also considering the well-being of our collaborators, as undergoing a great deal of travelling can be demanding. Therefore, we have implemented Video Conferencing Systems in all our sites, to use as an alternative to travel as often as possible. Additionally, we favor rail transportation for national trips and near-border destinations in neighbouring countries.

Mobility PlanIn order to actively encourage collaborators to favor an environmentally friendly commute to work, we have implemented a Mobility Plan late 2015. Concurrently with our yearly CSR training, during which we notably raise awareness about the negative impact the excess CO2 has on climate change, we offer a 500CHF annual subsidy to all employees, for any kind of eco-friendly transportation (for example bicycle, electric vehicle, public transport membership).

Sustainable Material

As part of our purchasing good practices, we aim at buying sustainable stationary and office material. In 2016, we have made a point of changing our consumption habits, evolving towards goods that are either:

Carbon Footprint

At RAM, our main focus regarding our company’s CO2 direct emissions targets our transportation practices, freight, employee mobility and waste management. Here, we specify “direct emissions” as we are referring to our company’s explicit activities.

What we will refer to as “indirect impacts” concerns the impact of our core business – asset management (please read more under the chapter SRI of this report).

Purchasing Good PracticesIn our effort to lower our carbon footprint, we try to avoid using material or consumables which have travelled across the globe before arriving at our premises. Accordingly, sincemid-2017, our Geneva Office isexclusively purchasing climateneutral printing paper and we favor local / national suppliers, especially those who have a CSR policy available and offer transparency on the product’s life cycle. Having said that, it is a short-term objective to formalize this purchasing policy in an official company document, as it is not yet the case.

Climate Compensation ProgramsLate 2017, we have paired with twoclimate compensation programs, MyClimate and GO GREEN by DHL. Wecurrently compensate the majority of ourCO2 emissions related to flighttransportation, as well as air and roadfreight. Our mid-term objectives are tobecome 100% climate neutral on thesetwo sectors, as well as require a fullcarbon footprint analysis from acompetent entity, which will allow us to set long-term objectives accordingly.

Produced to a level of quality that ensures a

long-lasting life cycle

Made with the ability of

being repaired or reused by changing just

parts of it

Adequate to be recycled

when becoming unusable

Made with recycled contents

Social & GovernanceSection 5

Corporate Social Responsibility Report, January 2018 14 Social & Governance

Our People

Offering a healthy and stable work environment is at the heart of our culture. We also believe that maintaining strong team spirit is key our company’s overall performance, hence we constantly require collaboration across departments.

HealthPromoting a healthy lifestyle via different means across our company is a significant part of our duty to our employees, as we consider the mental and physical well-being of all staff as the fundamental basis for sustainable corporate development as a firm. We have organized ergonomic training and quit smoking programs since early 2016. We have also been coordinating monthly sport sessions, promoting physical activity, giving our employees the opportunity to discover new sports with the objective of strengthening team spirit and promoting interactions across departments. Lastly, we’ve partnered with the Swiss start-up Felfel, for a socially responsible corporate vending machine solution, to support local producers and provide healthy food to our employees.

Training Professional Development PolicyThe overall purpose of the policy is to set out guidelines and purpose for our investment in our people. The policy emphasizes the importance of maintaining a continuous learning program to develop a core of well-trained individuals whose performance will enhance the company’s abilities to perform at a level that is consistent with growth and profitability objectives.

We wish to create a learning environment where employees’ will be prepared to accept change, develop new skills and take responsibility for their own continuous learning, to ensure their effective contribution to the successful achievement of both business and personal goals. It is also the aim of the company to encourage its employees’ to make the most of learning opportunities to realize their own personal potential and enjoyment of their job.


Philanthropy

RAM Active Philanthropy Foundation was created in 2016. The Foundation, which is established under Swiss law and recognised as being of public benefit, is administered by a board comprising Partners and staff members of RAM Active Investments SA.

Its primary purpose is to provide financial support to charitable organisations and public-interest projects in Switzerland and abroad. The Foundation aims to help improve the living conditions and secure a better environment for communities around the world. The Foundation provides support for numerous projects to help fulfil its objectives, in particular in the fields of medical and scientific research, education, social support, food programs and environmental protection.

The Foundation is proud to support:

UNCHR

UNHCR, the UN Refugee Agency, is a global organization dedicated to saving lives, protecting rights and building a better future for refugees, forcibly displaced communities and stateless people. We work to ensure that everybody has the right to seek asylum and find safe refuge, having fled violence, persecution, war or disaster at home. Since 1950, we have faced multiple crises on multiple continents, and provided vital assistance to refugees, asylum-seekers, internally displaced and stateless people, many of whom have nobody left to turn to. We help to save lives and build better futures for millions forced from home.

La Fondation Miracles

La Fondation Miracles is a registered Swiss charity that was created in 2008 to help and finance the running of the MIRACLES CENTRE for Prosthesis and care based in Mostar, Bosnia-Herzegovina. Our mission is to provide prosthetic care to the largest possible number of landmine victims and disabled citizens, regardless of their religion, ethnicity, location, social or economic situation. To give all amputees the opportunity to find work and provide for their families and to give children the chance of a normal life in school and sports Since our launch in June 2009, the Miracles Centre has made and fitted on average one new limb a week, as well as numerous adjustments and orthotic devices.

© UNHCR/David Azia

© UNHCR/David Azia

© Fondation Miracle

© Fondation Miracle


SwissPKD defend the interests of patients affected by a genetic disease called ADPKD (Autosomal Dominant Polycystic Kidney Disease). The association is promoting biomedical research, publications and interaction between patients, scientists and institutions. SwissPKD plays a key

role at institutional level, promoting the interests of patients and bringing together regulators and health care professionals. As a founding member of PKD International, SwissPKD is a keen international player since 2013, promoting advocacy and coordinating cross-national projects.

The CANSEARCH Foundation created the first research platform specifically focused on pediatric oncology-hematology in Geneva. Together with a dozen highly qualified researchers, it has become

an important player in the international network of the treatment and research into childhood cancers. It offers young patients the benefits of the most advanced research and studies.

At present, Children of the Dawn cares for 869 children aged 5 to 24 in eight rural communities: Mathabatha and Lenyenye located in the Limpopo Province, Bushbuckridge, Mangweni and Ermelo situated in Mpumalanga, Qwaqwa in the Free State

Province, Mpumaze in Kwazulu-Natal, and Matatiele in the Eastern Cape. The sponsorship programme is run on the ground by eight dedicated teams. 70% of the sponsored children are orphans or living with a HIV-positive parent.

ARTC (Association pour la Recherche sur les Tumeurs Cérébrales) was created in 1992 by physicians and families of patients. Its main goal is to promote brain tumor research through fellowship or scholarship to young researchers and through direct support of research projects at an early stage. Current projects are mainly dedicated to

experimental therapy of gliomas with the ambition to accelerate early clinical trials with innovative agents in patients. Also ARTC support projects correlating the molecular profiles of gliomas and lymphomas with the clinical course of the disease in the hope to identify prognostic factors and new therapeutic targets.

For 15 years, the NGO 1001fontaines has been pioneering an innovative response to the problem of safe drinking water in Cambodia and Madagascar.

Its mission is to improve the health of people living in poor, isolated communities by enabling them to produce and distribute safe drinking water based on a social enterprise business model, which ensures that each village is self-sufficient and that the solution is durable. The three pillars of the model are water quality, accessibility and sustainability.

In 2008, 1001fontaines launched the “Water in School” program enabling more than 150 000 children in 400 schools to get access to free safe drinking water at school in Cambodia every day! The objective is to reach 180 000 in 2018! Through its program, 1001fontaines has a significant impact on the children’s health, ensuring them a better future by contributing to their continued, healthy presence at school.

AISM is the only Italian MS organization that functions at 360° in MS by:

• funding and promoting scientific research on cause and cure of MS;

• encouraging and providing services at national and local level;

• representing and protecting the rights of people with MS.

AISM is a No Profit Organization, working in Italy since 50 years, as the reference organization for 114,000 MS sufferers and their families. AISM has been operating all over the Italian territory, through 163 Local branches, 17 Regional coordinating offices, an more than 10.000 volunteers.

SwissPKD

CANSEARCH

Children of Dawn

ARTC

1001 Fontaines

AISM

© 1001 Fontaines

© 1001 Fontaines

© CANSearch© CANSearch

© UNHCR/David Azia


Governance

At RAM we are committed to maintaining the very highest standards of conduct in every aspect of our business. We pride ourselves on our commitment to integrity, honesty, transparency and always doing the right thing in serving our clients, alongside our investment expertise.

RAM’s Compliance team is responsible for advising employees on continued compliance with their relevant legal and regulatory obligations, as well as regularly monitoring those obligations.

All RAM employees are required to periodically certify their understanding of compliance with the contents of our internal Compliance Manual and policies, including the Code of Ethics. Employees receive regular training on topics such as market abuse and have an absolute duty to comply with the rules and laws of the jurisdictions in which we operate. Above all, we expect everyone at RAM to adhere to the highest standards of compliance in their everyday working practices. This includes identifying and managing conflicts of interest to having open and transparent relationships with colleagues, clients and regulators.

We have a zero- tolerance policy in relation to bribery and corruption and unethical business practices and it is the responsibility of all employees to adhere to these standards which are underpinned by our anti-money laundering and anti-bribery and corruption policies and procedures as well as our conflicts of interest and gifts and entertainment policies. Raising awareness amongst employees of all of these policies as well as other important areas such as market abuse via face to face staff training has been a particular focus over the last year.

RAM is also committed to working with our EU distributors over the coming year to define a Target Market for our products to address product governance aspects of MIFID II and benefit end customers.

RAM Active Investments SA

+41 22 816 87 00

Rue de Rhône 62CH-1204 GenéveSwitzerland

Benjamin LiHead of SRI & CSR

[email protected]

Marie SaundersCSR Officer

[email protected]

[email protected]

ram-ai.com © RAM Active Investments 2018. All rights reserved. Private & Confidential.

RAM Active Investments AG

+41 58 717 97 90

65 Talstrasse8001 ZurichSwitzerland

RAM Active Investments (Luxembourg) SA

+352 28 56 14 1

51 Avenue John F. Kennedy1855 LuxembourgLuxembourg

This respresents neither an offer nor an invitation to buy or sell the investment products mentioned herein and may not be interpreted as an investment advisory service. It is not intended to be distributed, published or used in a jurisdiction where such distribution, publication or use is prohibited, and is not intended for any person or entity to whom or to which it would be illegal to address such a document. In particular, the products mentioned herein are not offered for sale in the United States or its territories and possessions, nor to any US person (citizens or residents of the United States of America). The opinions expressed herein do not take into account each customer’s individual situation, objectives or needs. Customers should form their own opinion about any security or financial instrument mentioned in this document. Prior to any transaction, customers should check whether it is suited to their personal situation and analyse the specific risks incurred, especially financial, legal and tax risks, and consult professional advisers if necessary. Investors are advised to base their decision whether or not to invest in fund units on the most recent reports and prospectuses. These contain further information on the products concerned. The value of units and income thereon may rise or fall and is in no way guaranteed. The price of the financial products mentioned in this document may fluctuate and drop both suddenly and sharply, and it is even possible that all money invested may be lost. If requested, RAM Active Investments S.A. will provide customers with more detailed information on the risks attached to specific investments. Exchange rate variations may also cause the value of an investment to rise or fall. Whether real or simulated, past performance is not necessarily a reliable guide to future performance. The prospectus, KIID, articles of association and financial reports are available free of charge from the SICAV’s head office, its representative and distributor in Switzerland, RAM Active Investments S.A., Geneva, and the funds’ representative in the country in which the funds are registered. RAM Active Investments S.A. is authorised and regulated in Switzerland by the Swiss Financial Market Supervisory Authority (FINMA). Issued in the UK by RAM Active Investments (UK) Limited which is authorised and regulated by the Financial Conduct Authority.

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