From extreme weather to transition risks, the systemic challenge of climate change lies in the interconnectedness of risk. Amundi is helping to shape solutions by integrating climate risks across its asset classes and pushing public debate forward.
With increasingly visible impacts, climate change has become one of the greatest challenges that humanity faces; the World Economic Forum Global Risks Report 2018 indicated “higher-than-average perceptions of both likelihood and impact” of climate change-related risks.
For financial markets, this means investors are now facing many challenges that are likely to impact asset prices. Amundi has developed an integration of climate change-related risks in all its asset classes: equity, fixed income and real assets such as green infrastructures, and green real estate.
Frédéric Samama, head of institutional client coverage at Amundi, explains: “We started the process more than 10 years ago and have been running different initiatives in parallel. First, we tried to develop an understanding of the risks that our clients were facing. Second, we pioneered many financial innovations. To name some of these, we developed the first mainstream low-carbon indexes back in 2014 (and the first prototypes in 2011). This product has addressed the “tragedy of the horizon” [as described by governor of the Bank of England and Financial Stability Board chair Mark Carney] and generated some additional returns, making the case that, by being green, investors could outperform.
“More recently, we have launched, in partnership with the International Finance Corporation, a very large green bond fund aimed at financing green infrastructures in emerging markets. We also have partnered with electricity company EDF to source and finance green infrastructure projects in Europe. Finally, we participate in the public debate by publishing papers on the topic or creating knowledge-sharing platforms on green finance.
“This approach is part of our DNA as a responsible investor. Back to the creation of the company, our chief executive officer, Yves Perrier, has positioned environmental, social and governance (ESG) [issues] as one of the four pillars of the firm.”
Amundi is rated A+ by the Principles for Responsible Investment, as of December 2018, and has been named Asset Management Best Firm for SRI/ESG in Extel’s socially responsible investing (SRI) and sustainability annual surveys since 2015.3
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The information contained in this document is deemed accurate as at April 30, 2019. Data, opinions and estimates may be changed without notice. Document issued by Amundi Asset Management, a French société par actions simplifiée – SAS with capital of €1,086,262,605 – Portfolio Management Company approved by the AMF under number GP 04000036.
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