Ethos has been selected by Pictet Funds to provide sustainability advice to its newly launched theme fund, “Pictet-Environmental Megatrend Selection”. Specifically, Ethos will engage in dialogue with selected investee companies, to convince them to improve their environmental, social and governance practices.
By combining asset management and shareowner engagement, Ethos and Pictet innovate in the theme funds management.
The newly launched “Pictet-Environmental Megatrend Selection” invests worldwide in the fields of water, renewable energies, timber and agriculture. Pictet Funds, the fund distribution company of Geneva private bank Pictet & Cie, has identified these key areas as offering attractive investment opportunities.
The investment process will integrate environmental, social and governance considerations in these sensitive fields. Indeed, failure to take sufficient account of sustainability and corporate governance issues can pose a serious risk for investors. Ethos has been called in as a specialist in engagement: it will seek dialogue with the management of the companies regarding issues such as codes of conduct, occupational safety and health, workplace rights, child labour, environmental damages and waste management. The fund therefore aims to improve the business practices of companies facing significant controversy in these areas.