How can you contribute to net zero efforts?
RESPONSIBLE INVESTING AT AMUNDI
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€798bn AUM
as of 30/06/2021*
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RECOGNISED EXPERTISE
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Investors are increasingly on board, and net zero alliances now exist for all kinds of financial institutions. However, net zero is not a one-size-fits-all. There are tools and guiding principles that can make sure you are ready, well positioned, and well equipped for the “net zero” wave.
*Amundi Asset Management AUM (rounded out) as at 30.06.2021
Click here to learn what net zero means for investors
Excluding the worst issuers from investment universes through comprehensive exclusion policy for companies responsible for most of the greenhouse gas emissions.
Innovative investment solutions and continuous dialogue with issuers to turn investment beliefs into concrete action: • Seek carbon reductions in the real-world • Look at trends and forward-looking indicators that are using new metrics to measure the contribution to net-zero • Clear reporting against the ultimate goal • A green transition cannot be achieved without a socially inclusive approach
Tapping into new geographies and asset classes when incorporating Net Zero in their Strategic Asset Allocation:
Exclude companies that are detrimental to net zero objectives
Historical carbon footprints are good, but this can be enhanced by combining it with forward looking metrics
Active engagement with companies is crucial to turn investment beliefs into concrete action
Engagement shows the credibility of an asset manager in its net-zero objective and puts pressure on corporates to act.
There is plenty of room for innovation when it comes to financing the transition to net zero
• Adapt your targets to geographies • Unlock financing barriers: this includes strategies structured around public-private collaborations • Consider new and unexplored asset classes such as green impact strategies and green private financing
Traditional approaches to Strategic Asset Allocation should be reassessed to account for climate risks
Forward Looking Indicators SBTi Targets: They are carbon reduction targets that are validated by the Science-Based Target initiative. The organisation assesses the ambitiousness of the targets with respect to the Sectorial Decarbonization Approach. Temperature Score: Those scores measure the alignment of corporates ambition and past performance with respect to the carbon budget of the IEA Sustainable Development Scenario. Temperature scores allow to quickly compare the commitments of a corporate with the overall goal of limiting global-warming to 1.5°C.
• Given the uncertainty around climate policy, scenario analysis can help anticipate future trends and pathways resulting from climate change • Pushing for dialogue at the industry and policy levels could play a major role in overall portfolio risk management
How should you allocate your investments to contribute to the net zero objective?
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Forward Looking Indicators Science-Based Target initiative (SBTi): Defines and promotes best practices in emissions reductions and net-zero targets in line with climate science. Temperature Score: Measures the alignment of corporates ambition and past performance with respect to the carbon budget.