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1. Short-term higher inflation and a more uncertain future path.
Greater focus on national strategic independence as a consequence of the war is increasing the likelihood of a move towards a disorderly transition to net zero that implies rising inflationary pressure.
Establish a broad “net-zero” offering
Expand impact investment solutions, reaching €20bn of assets in impact strategies
Enlarge RI in passive management, 40% of ETF range will be ESG ETF
Provide clients with access to cutting edge sustainability analytics through ALTO Sustainability
2. Limiting the induced social costs of the transition will be key.
Divest from unconventional hydrocarbons by 2022*
Corporations could manage a rebalancing of profits towards labour that should have a limited negative impact on earnings.
3. Aggregate bonds are back and shining.
Capture shareholders’ opinions on Amundi’s climate strategy
Reduction of Amundi’s operational emissions by -30% per employee
After a decade of meagre returns, bonds’ expected returns are moving up, even above their long-term average. The preference will be for government bonds and credit investment grade. In search for income, EM bonds are favoured over high yield.
“Our new “ESG Plan 2025” is even more demanding and aims to align all of our stakeholders: investors, companies, employees and shareholders. The acceleration of our ESG commitments will be Amundi's primary growth lever around the world.”
Valérie Baudson
Chief Executive Officer of Amundi
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4. Lower equity returns and higher volatility vs the past amid climate change impact.
Divest from unconventional hydrocarbons by 2022*
Equity still key for portfolio construction, look for regional diversification with focus on Emerging Markets, value investing and energy transition themes.
5. To target higher returns, investors will have to count on EM equity, as well as real and alternative assets.
Capture shareholders’ opinions on Amundi’s climate strategy
Reduction of Amundi’s operational emissions by -30% per employee
A lower return environment compared with history will call for greater allocation towards Emerging Markets and increased diversification into real and alternative assets.