French boutique Sycomore AM has launched Sycomore Eco Solutions, an equity fund investing in listed companies that contribute positively to the energy and environmental transition.
Sycomore Eco Solutions focuses on five key areas: mobility and transport; the circular economy; renovation and construction; energy production and management; and ecosystem related businesses.
The investment approach relies on strong exclusion criteria (coal, minimum ESG rating…) and on a strategic stock selection process. The firm explained that the fund systematically excludes businesses that visibly destroy natural capital.
This proprietary methodology is based on an environmental quantification process that measures, for each business, the extent to which companies align with the energy and environmental transition.
Sycomore Eco Solutions, gathering 40 to 50 stocks, tends to favour small and mid caps but also invests in larger stocks. Jean-Guillaume Péladan, director of the energy and environmental strategy at Sycomore AM manages the fund alongside Thomas Dhainaut and Alban Préaubert.
Sycomore AM has also set up a strategic environment committee of experts with academic, institutional, corporate or NGO backgrounds.
“This steering committee will be a venue for members to exchange critical and constructive views on the complex issues raised by Environmental metrics when applied to the field of asset management,” Péladan said.
“In 2015, investment strategies can no longer ignore the environmental impact of the business models they target. The first specificity of our fund is to work from an investment universe that is broad as far as sectors are concerned, but selective in terms of environmental impact: the eco-solutions universe,” he added.
Sycomore AM is an official sponsor of the COP21 summit in Paris.