Climate solutions

As an actor of transition, we are committed to supporting the goal of Net Zero emissions by 2050.

responsible-investment-initiatives-iceberg

Climate Change is arguably the greatest challenge of our times

Accelerating the Transition to a Low Carbon Economy

 

There is an urgent need to accelerate the transition of our economy towards a low carbon model in order to collectively reach the global objective of Net Zero emissions by 2050 or sooner.

 

As a pioneer in Responsible Investing, we have a role to play in supporting investors wishing to participate in this transition.

 

    2022.08 - Race To Net Zero - EN

    Why choose Amundi as your partner in Fixed Income investing

    Active Member of the Net Zero Asset Managers initiative

     

    As part of our efforts to address this challenge, in July 2021, we joined the Net Zero Asset Managers initiative.

     

    This initiative gathers asset managers that are committed to working in partnership with asset owners on de-carbonization by:

     

    • Transforming their product range and engaging with clients to progressively allocate assets to investment solutions aligned with the Net Zero objective
    • Implementing an engagement strategy, including a set of interim targets for 2030, in line with the objective of Net Zero emissions

      What does Net Zero mean?

      Net Zero refers to a global state where the amount of greenhouse gas emissions produced and the amount removed are equal. It is an equivalent of “carbon neutrality”.

      Reaching Net Zero relies on two pillars:

      Reducing carbon emissions to their minimum, by favouring energy efficiency, low carbon solutions and energy sobriety.

      Developing carbon sinks with the objective of removing further carbon from the atmosphere. These can be natural (forests, soil, oceans) or technological, also known as carbon capture and storage (CSS) solutions.

      Discover more on Net Zero:

      Why do we need to reach the global Net Zero objective?

      The Paris Agreement on climate change

      In 2015, under the Paris Agreement, commitments were made to drastically reduce greenhouse gas emissions, bringing them “close to zero” by 2050. This agreement allowed public and private players to increase their climate engagement.

      There is a global consensus that reaching the Net Zero objective by 2050 should avoid the worst consequences of climate change.

      Discover more on Net Zero:

      What role can investors play?

      Investors can be pivotal in the fight against climate change by:

      Financing climate adaptation and mitigation solutions by decarbonizing their portfolios through Net Zero alignment strategies.

      Read our Research Center article: 

      Engagement with issuers and voting at their Annual General Assembles to encourage companies to shift to more sustainable business models

      Download our Amundi's shareholger engagement report 2023:

      Encouraging dialogue at the industry level, in order to implement a coordinated response.

      The Impact of Global Warming and the Net Zero transition

       

      Global warming and the Net Zero transition have far-reaching implications for investors notably as they will need:

       

      • To consider how the transition will impact economic and financial variables considered in strategic asset allocation
      • To reassess their traditional asset allocation approaches to appreciate the fundamental shifts in the world’s economy caused by climate change and its impact on returns expected across asset classes.
      • To face trade-offs when they will introduce climate considerations into their portfolios (notably between the levels of portfolio diversification and of incorporation of climate targets

      Global warming and the Net Zero transition have far-reaching implications for investors

      Climate targets through strategic asset allocation

       

      For climate targets to be realized, asset allocation decisions can be implemented through different ways which are non-mutually exclusive:

       

      • Using a passive climate-aligned benchmark, such as a Paris-Aligned Benchmarks (PAB)
      • Investing in Net Zero active cross-asset solutions, which aim to reduce the carbon footprint of portfolios
      • Or using an active cross-asset climate strategy which incorporates specific targets for green investments.

      For climate targets to be realized, asset allocation decisions can be implemented through different ways which are non-mutually exclusive

      How can we support you on your journey to Net Zero ?

      We are committed to providing a broad range of investment solutions that support you in your Net Zero journey

      There are several paths for investors to consider when integrating environmental green criteria in their investments.
      This is why we have developed a range of green investment solutions spanning across asset classes and regions.
      eyond these off-the-shelf strategies, we can also offer tailor-made green solutions.

      We are committed to providing a broad range of investment solutions that support our clients in their Net Zero journey.

      NZ stands for Net Zero. Please refer to the Amundi Responsible Investment Policy and the Amundi Sustainable Finance Disclosure Statement available here and for more product specific information, please refer to the relevant fund’s prospectus and pre-contractual document (PCD) available at www.amundi.com
      Amundi as of May 2024

      Among these solutions, we have built a Just Transition for Climate strategy to address social impacts resulting from the transition to low carbon economies. 

      Video - Just Transition - EN

      Discover our Green Solutions brochure

      We are strongly engaged in the transition

      • Member of the Powering Past Coal Alliance
      • Part of the Executive Committee of the International Capital Market Association (ICMA) Green Bond Principles
      • Member of the Institut de la Finance Durable (formerly FInance for Tomorrow) and the Investors for a Just Transition coalition
      • Signatory of the Finance for Biodiversity Pledge and member of the Finance for Biodiversity Foundation
      • Participant to Finance for Tomorrow's Green Finance and Just Transition taskforce
      • Other strategic partnership on green topics include... Climate Action 100+ and Nature Action 100;  IIGCC and AIGCC
      • Strategic partnership with IFC, a member of the World Bank Group. Launch of AP EGO, a targeted green bond fund focusing on emerging markets.
      • The Asian Infrastructure Investment Bank and Amundi have announced a USD500 million portfolio dedicated to Asia Climate bonds.
      • The partnership with the European Investment Bank, centered on the Green Credit Continuum Project, aims to foster the development of the green debt market beyond existing green bonds.
      • Partnership with Caisse des Dépôts to launch the first Indexing solution in Europe fully aligned with the EU PAB label.

      Climate-related Research

      We have been particularly active in terms of climate-related research. In addition to analyses dedicated to environmental and climate issues, 2022 was marked by an increase in the inclusion of climate issues in macroeconomic analyses and quantitative studies.

      Download the Activity report on climate-related research 2022

      Want to know more?
      Discover our must read articles, videos and podcasts dedicated to Net Zero.

      Discover our Responsible Investing offering & initiatives