Addressing climatic changes solutions
The world is becoming ever more aware of the very real impact climate change and the associated legislation are likely to have on portfolio returns. At Amundi, we’ve developed a number of initiatives to provide our investors with opportunity to participate in the transition to a low carbon economy and/or to mitigate the associated financial risk.
Aligning portfolios with low carbon economy
The Portfolio Decarbonization Coalition (PDC - read more below) has largely exceeded its ambitions only a year after launch. At beginning of December 2015, the PDC totaled 25 members representing 9 countries with $600bn in reduced carbon investments vs $100bn announced at launch.
Major players, such as Allianz and ABP, have joined the PDC during the Climate conference in Paris.
With these two major European institutions, it reinforces the messages:
- The decarbonization of portfolios is becoming mainstream;
Decarbonizing today represents trillions and trillions tomorrow.
Amundi’s initiatives to address climatic changes
With key partners and institutional investors such as AP4, CDP (Central organisation for carbon data) and the United Nations Environment Programme’s financial initiative (UNEP FI), Amundi is involved in a multiparty initiative: the Portfolio Decarbonization Coalition 1.
In parallel, Amundi has developed innovative solutions.
- The growing market of green bonds enables investors to actively participate in reducing the effects of global warming whilst meeting their investment objectives.
- As a member of the Green Bond Principles1 and signatory of the Paris Green Bonds Statement2, Amundi is committed to sharing our leadership and investment innovation in this pivotal sector. We have developed a high impact solution that can benefit you as an investor as well as the field of green finance. We seek to match traditional fixed income performance whilst also helping to fund a number of low carbon initiatives, balancing your needs as investor along with those of the environment.
- Our process3 begins with screening the securities that make up the Barclays MSCI Green Bonds Index for greenwashing. That is, for companies who invest more in fabricating an unjustified pro-environmental image rather than implementing genuine pro-environmental business practices.
- This screened universe is then extended to include bonds emitted by pure player GreenTech4 companies and corporations playing a pivotal role in advancing environmental change.
- The extending of the universe allows us to offer better diversification in an effort to generate higher yields without compromising on the environmental virtue of the portfolio.
- The final portfolio is composed of issuers that have a proactive approach to environmental responsibility and climate change related issues.
3. Illustrative and subject to change. For further details on the fund please see the KIID.
4. Notably including but not limited to renewable energy, biomass, efficient transport, water & waste management, environmental services and other activities that have appositive impact on the environment.
Amundi committed to responsible financing
of assets under SRI management
of SRI management companies in France2
professionals dedicated to SRI analysis and management
Source: Amundi data and perimeter as at March 2017
1. The members of this coalition, which aims at mobilising financial markets in the fight against climatic changes, are committed to decarbonize their portfolios for a total amount of USD 100 billion by the climate conference end-2015.
2. In term of assets under management. Besides, 1st asset manager to be certified by the Afnor (French standardisation organisation) for its SRI approach.
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