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2024: Our active stewardship illustrated

Published on
February 10, 2025
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1 minute(s) read

As a long-term investor, we engage in regular dialogue with the companies in which we invest to encourage them to improve their practices for taking environmental, social and governance (ESG) criteria into account. Find out how our active approach to stewardship was borne out in 2024.

70Engagements held
98%of meetings voted
56%of meetings where Carmignac voted against management at least once*

*This data refers to the number of meetings where Carmignac took a vote position against the recommendation of the board. In practice, this refers to votes cast against management-led resolutions and, in most cases, votes cast for shareholder-led resolutions (unless the shareholder-led resolution is supported by management).

Carmignac is committed to aligning its dialogue strategy with five types of engagement: engagement on ESG ratings, thematic engagement, impact engagement, engagement on controversial behaviour, and engagement on proxy voting decisions.

Over 2024, we initiated dialogue with investee companies 70 times and covered five types of engagement.
In 2024, Carmignac voted against the management of our investee companies at least once at 56% of meetings voted.

Find out how we specifically engaged with two investee companies in 2024.

LVMH

Sector: Consumer Discretionary
Region: France

The company is an equity and fixed income holding in our funds1.

  • Discuss the company’s approach and actions taken following the Dior controversy where suppliers were found to have violated labour laws.
  • Request the company to publicly present audit results by Maisons.

In November 2024, we met with the company’s Investor Relations and sustainability teams along with a small a group of other investors.

Following the case, a judicial administrator was assigned by the company to oversee it’s supply chain management.

Since our last engagement, the company has established a new Group action plan and duty of care to satisfy a finding from the Maison audit.

The company confirmed their reluctance to publicly disclose the Maison audit results - given the nature of the industry, and we have asked the company to reevaluate their position on the matter.

The company has worked diligently following the controversy to strengthen their supply chain management. It is clear that the pressure to manage labour responsibly comes from top management and is viewed as a priority. Taking their actions into account, whilst acknowledging the systemic risks, we view the START rating for the “social” pillar, suitable to stay as B.

Centrais Elétricas Brasileiras S.A.

Sector: Utilities
Region: Brazil

The company is an equity holding in our funds2.

We engaged with the company due to their:

  • Involvement in legacy controversies tied to the development of hydroelectric dams in areas occupied by indigenous people.

  • Lack of disclosures regarding the investments and projects which help maintain the quality and safety of their dam infrastructures.

In October 2024, we had a videocall with the company’s Investor Relations representatives.

During the meeting, we asked the company to continue the progress shown with community dialogues and focus efforts with stakeholders (communities, rating providers, investors) to concretely demonstrate the benefits of the programs that have been put in place.

We also asked the company to improve disclosures relating to their dam infrastructure upkeep and maintenance projects (similar to the standards shown by their peers).

The company agreed to focus efforts with indigenous communities and resolve pending doubts about their efforts.

In Q3-24 reporting, the company published documents relating to their operational performance and said that they will be developing a new quarterly document which will include the requested information regarding modernization and maintenance projects at their facilities.

As a result of the engagement we deemed that the overall START rating is suitable to remain as A.

1As of 31st December 2024: Carmignac Portfolio Human Experience, Carmignac Sécurité, Carmignac Portfolio Sécurité. 2As of 31st December 2024: Carmignac Emergents, Carmignac Portfolio EM Debt, Carmignac Portfolio Emerging Patrimoine, Carmignac Portfolio Evolution, Carmignac Portfolio Emergents, FP Carmignac Emerging Markets.

To find out more on our responsible investment philosophy, please visit our Sustainable Investment section:

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CARMIGNAC GESTION Luxembourg - City Link - 7, rue de la Chapelle - L-1325 Luxembourg - Tel : (+352) 46 70 60 1 Subsidiary of Carmignac Gestion - Investment fund management company approved by the CSSF Public limited company with share capital of € 23,000,000 - RCS Luxembourg B 67 549