Principles for Responsible Investment

In line with its strategic ambitions and with full transparency towards its stakeholders, Amundi decided to publish how it conceives and implements SRI in her third-party asset management.

In this brochure Amundi details its extra-financial analysis process, its SRI management principles as well as its governance policy especially dedicated to it. It also states its shareholder dialogue and voting policy and its involvement in developing and improving SRI.

By signing the Principles for Responsible Investment (PRI), Amundi Group has reasserted its commitment to responsible finance.

The PRI are six principles in the form of 32 actions developed under the aegis of the United Nations Environment Programme - Finance Initiative (UNEP-FI) and the Global Compact, currently supported by over 500 major institutional investors and asset management companies. Aware of the growing importance of environmental, social and governance (ESG) issues, the signatories make a commitment to take these criteria into account in all of their investment analysis and decision-making processes, to encourage ESG practices among issuers and the investment industry, and to collaborate in implementing these principles.

Amundi supports this initiative, which corresponds to its view of investors as playing a central and financially responsible role, obliged to take all material factors into account in their investment management, including ESG criteria.

Each year, the PRI carry out a general survey based on a questionnaire sent to the signatories in order to assess progress made. Each signatory then receives an individual score relative to all signatories and its peers.

As part of its policy of shareholder dialogue, Amundi supports a number of collective shareholder initiatives, such as the Institutional Investors' Group on Climate Change (IIGCC), the Carbon Disclosure Project (CDP), the CDP Water Disclosure, the Forest Footprint Disclosure, the Acess to Medecine Index, the UN Global Compact engagement on leaders & laggards and the Extractive Industries Transparency Initiative (EITI).

These international initiatives bring together institutional investors and asset management professionals with the aim the aim of urging companies to improve their practices and disclosures on fighting climate change, deforestation and improving healthcare in developing countries. Another initiative seeks to persuade the extractive industries to be more transparent in their relations with the countries where they operate.

Amundi is a member of the Forum pour l’Investissement Responsible (FIR), Eurosif, the Observatoire sur la Responsabilité Sociétale des Entreprises (ORSE), and also AFG, the Institut Français des Administrateurs (IFA), and the Société Française des Analystes Financiers (SFAF). Amundi plays an active role in a number of working parties organised by these organisations to develop responsible investment, sustainable development and corporate governance.

The exercise of voting rights and shareholder dialogue are essential elements of our fiduciary responsibility and our role as a responsible investor.

From 1996 onwards, Amundi established its own voting policy updated yearly in order to incorporate the best practices in corporate governance but also, since 2003, in social and environmental responsibility. Amundi decided to exercise the voting rights for a very large majority of its funds under French and Luxembourg law in order to fulfill its responsibility as a shareholder.

Early in its commitment toward responsible investment, Amundi also implemented a shareholder dialogue process based on an alert system informing companies of the SBF120 index and a group of large European issuers of potential negative votes at their general meetings.

Voting and dialogue allow us to actively participate in the improvement of the practices of companies in which we invest.

By creating the Medicis Committee, Amundi is setting forth the reference think tank on sustainable finance. The aim of the Medicis Committee is to reflect on major issues of modern society in connection with finance, with a two-fold objective:

• enlightening Amundi on how to implement its fourth pillar, more specifically by defining its Socially Responsible Investment policy
• contributing to broader public debates, and allowing Amundi to take full responsibility for its role in society as a global financial entity.

The Committee’s mission is as follows:

• studying the major economic, social and environmental issues our societies are facing, through a multidisciplinary approach
• reviewing how these issues affect the reality of sustainable finance, and coming up with practical advice for financial actors and businesses
• making sure the result of this work is widely spread not only among Amundi’s members and collaborators, but also among the scientific community, the various institutions on the market place, and the general public.

Chaired by Amundi’s Chief Executive Officer, the Medicis committee gathers key figures from various walks of life and nationalities: economists, philosophers, scientists, sociologists, CEOs, representatives from associations…

Amundi supports the creation and financing of the first "Sustainable Finance and Responsible Investment" academic chair, sponsored by the Association Française de Gestion (AFG) and set up by the Ecole Polytechnique and the Institut d’Economie Industrielle (IDEI) in Toulouse.

Its main aims are:

• to help show objectively that developing sustainable finance and responsible investment is not only necessary but above all possible;
• to develop research methodologies to ensure better identification of extra-financial criteria and their integration into analysis;

The chair's research will concern two main areas: "financial markets, investment strategies and sustainable growth"; "corporate governance and sustainable finance".

The Climate Economics Chair

Amundi is sponsoring the Climate Economics chair as a partner of the “Carbon Prices and Markets” research initiative.
The Climate Economics Chair is a joint initiative of CDC Climat and the Paris-Dauphine university under the patronage of the Europlace Institute of Finance (EIF) foundation. Its purpose is to strengthen the means of research on how carbon markets work, the conditions for their global expansion and their ability to stimulate initiatives to fight climate change. It also intends to shed new light on the connections between climate change and economic systems.

The FIR Finance and Sustainability European Research Award

Amundi is a financial backer of the FIR Finance and Sustainability European Research Award and a member of its Steering Committee. This award is intended to support and promote European research into the financial markets' responses to sustainable development issues. It rewards academic research by students and researchers in the field.

Aware of its responsibility as a key player in the asset management industry, Amundi has adopted the highest standards in applying marketplace regulations, particularly with regard to information and transparency on the instruments and management techniques used. Furthermore, within the framework of its active asset management, it does not allow its UCITS funds to invest directly in companies involved in the manufacture or trade of antipersonnel mines and cluster bombs.

Amundi Group puts the ESG Transparency of its responsible investment funds online

Amundi makes public the composition of the responsible investment funds managed by Amundi Group and calculates their ESG footprint.
The ESG footprint is worked out by Amundi's Responsible Research team and based on its reference system covering environmental, social and governance criteria in the management of responsible investment funds. The results are provided in the form of scores and charts, for both the portfolio and its benchmark index.