Candriam Sustainable Equity Circular Economy, C-H - Capitalisation/  LU2109441175  /

The fund seeks to achieve capital growth by investing in the principal assets traded and selecting companies providing solutions a for a transition towards a circular economy. The circular economy represents an alternative to the current linear economic model ("extract, manufacture and dispose") and aims to reduce the need to extract raw materials while reducing waste generation. The fund implements quantitative screens relying on external data source as well as artificial intelligence to identify companies with a potential contribution to the transition to the circular economy. These companies are implementing this in a variety of ways, depending on their business sector and the circularity challenges they face. This may involve integrating a greater proportion of biodegradable or recycled materials into their production processes, developing waste treatment solutions, enabling the extension of the lifespan of manufactured products, or reducing the need to produce new equipment by making it easier to share. Companies are screened based on their ESG performance and exposure to controversial activities. The ESG analysis is the product of a methodology developed by the Management Company. The analysis of a company's contribution to the circular economy is based on an internal model developed by Candriam which aims to create a body of evidence for each company to support its degree of circularity. Moreover, each company is assessed through a financial framework according to five fundamental criteria: quality of management, business growth, competitive advantage, value creation, financial leverage. This assessment takes into account ESG aspects. The strategy therefore also takes into account each company's overall contribution to the Paris Agreement objectives, and its alignment with a 2-degree global warming scenario. This alignment is not only based on carbon emissions, but includes avoided emissions, as well as a forward-looking assessment of a company's investment plans, credibility of greenhouse gas emission reduction targets and strategy. The fund aims to invest primarily in companies that demonstrate a positive contribution to the objectives of the Paris Agreement and therefore intends to propose a temperature figure of 2.5 degrees or less. In line with this objective, the fund aims to invest a higher proportion of total assets under management in high stake companies than the benchmark. The EU Climate Benchmark Regulation defines high stake companies as those belonging to one of the sectors considered to play a leading role in achieving the objectives of the Paris Agreement.

The fund seeks to achieve capital growth by investing in the principal assets traded and selecting companies providing solutions a for a transition towards a circular economy. The circular economy represents an alternative to the current linear economic model ("extract, manufacture and dispose") and aims to reduce the need to extract raw materials while reducing waste generation. The fund implements quantitative screens relying on external data source as well as artificial intelligence to identify companies with a potential contribution to the transition to the circular economy. These companies are implementing this in a variety of ways, depending on their business sector and the circularity challenges they face. This may involve integrating a greater proportion of biodegradable or recycled materials into their production processes, developing waste treatment solutions, enabling the extension of the lifespan of manufactured products, or reducing the need to produce new equipment by making it easier to share. Companies are screened based on their ESG performance and exposure to controversial activities. The ESG analysis is the product of a methodology developed by the Management Company.