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.
     

   Watch Mats Andersson speech  

Download the Press Release   Download Mats Andersson speech

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. 

Green Bonds

  • 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 GreenTechcompanies 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.

1. For further information http://   www.icmagroup.org

2. For further information http://   www.climatebonds.net

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

€172 bn

of assets under SRI management

N°1

of SRI management companies in France2

+70

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.

This information is exclusively intended for “Professional” investors within the meaning of the MiFID Directive 2004/39/EC of 21 April 2004, and articles 314-4 and following of the General Regulations of the AMF. It is not intended for the general public or for non-professional individual investors within the meaning of all local regulations, or for “US Persons”, as defined in the Securities and Exchange Commission’s “Regulation S” under the 1933 U.S. Securities Act.

This non-contractual information does not under any circumstances constitute an offer to buy, a solicitation to sell, or advice to invest in financial instruments of Amundi or one of its affiliates (“Amundi”).

Investing involves risks. The performance of the strategies is not guaranteed. In addition, past performance is not in any way a guarantee or a reliable indicator of current or future performance. Investors may lose all or part of the capital originally invested.

Potential investors are encouraged to consult a professional adviser in order to determine whether such an investment is suitable for their profile and must not base their investment decisions solely on the information contained in this document. 

Amundi assumes no liability, either direct or indirect, resulting from the use of any of the information contained in this document, and shall not under any circumstances be held liable for any decisions taken on the basis of this information. This information may not be copied, reproduced, modified, translated or distributed, without the prior written approval of Amundi, for any third person or entity in any country or jurisdiction which would subject Amundi or any of its products to any registration requirements within these jurisdictions or where this might be considered unlawful. 

This information is provided to you based on sources that Amundi considers to be reliable, and it may be modified without prior warning.