Amundi subsidiary CPR Asset Management has launched a new thematic fund that will invest in global equities it views as best equipped to manage climate change-related risks.
Managed by global equities fund manager Alexandre Blein, the fund will have an investment universe of 700 stocks encompassing all geographies and sectors.
Investments will be made in companies striving to meet the Paris Agreement’s commitment to maintaining a global temperature rise of under 2 degrees Celsius this century.
It’s the first time CDP has been involved in the design and creation of an investment fund.
CDP (formerly the Carbon Disclosure Project) is a UK-based organisation supports companies and cities to disclose the environmental impact of major corporations. It holds the most comprehensive collection of self-reported environmental data in the world, with 7,000 companies disclosing in 2018.
This collaboration supports CPR AM engagement with all companies – regardless of size – to ensure future action on the issue of climate change.
Science-based targets data
By incorporating environmental data from CDP, CPR AM will be able to assess a company’s ability to generate economic value with positive environmental stewardship, the group said.
The analysis will be underpinned by external climate ratings through CDP and science-based targets data; an extensive ESG filter at different levels of granularity based on Amundi ratings; an exclusion of high ESG controversies through a third filter.
This approach allows CPR AM to analyse companies across all sectors and assess if they are considering climate risk within their corporate strategy and product innovation, the group said.
Valérie Baudson, CEO of CPR AM, said: “This fund offers investors an innovative investment solution to address climate-related financial risks.”
“Reducing global warming requires collective action across the private, public and not-for-profit sectors.”
We take our role as a responsible investor seriously and strive to influence companies’ behaviours to drive positive environmental change, and ultimately portfolio performance”.
Laurent Babikian, Director of Investor Engagement at CDP Europe, commented: “Corporate transparency on environmental issues is key but this information needs to be priced in and integrated by the market, in order to shift capital at the pace required.
“The launch of this fund demonstrates that information on corporate climate performance is not only being requested by the market but is being used in investment decision making, in this case through stock selection and screening.”