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.
An association with EDF (Electricité De France, 1st French electricity company) to generate funds invested in renewable energies
Amundi and EDF Group seek to raise money to support the financing of projects within the frame of energy transition.
This association of two leaders in their respective fields benefits from:
- the capability of EDF, leader in low carbon energy, to identify the best investment opportunities in the business of renewable energies,
- the knowledge of Amundi, leader in asset management in Europe, in terms of structuration and capability to rally savings.
This partnership aims to offer alternative investments through an asset class uncorrelated to the volatility of traditional markets.
The investment themes are notably:
- small hydroelectricity,
- solar or wind-powered farms,
- energy efficiency (public lighting, high electricity-consuming industries).
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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