Global equity fund with multi-sector approach targeting companies that best manage climate risks
CPR AM will use CDP’s proprietary climate ratings and wider expertise completed by its own ESG approach
Launched to mobilise international action in order to meet the Paris Agreement targets
Building on its commitment to environmental, social and governance (ESG) issues, CPR AM, a subsidiary of Amundi, is teaming up with CDP to launch a thematic equity fund dedicated to the fight against global warming.
CPR AM has launched a new thematic equities fund that will invest in global equities that best 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 all sectors a priori. 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. This is the first time CDP has been involved in the design and creation of an investment fund.
Thanks to this exclusive partnership with this international non-profit organisation CDP, CPR AM combines environmental data disclosure and ESG analysis to determine the investment universe. CDP holds the most comprehensive collection of self-reported environmental data in the world, with 7,000 companies disclosing in 2018.
This innovative collaboration supports CPR AM’s engagement with all companies, regardless of size, to ensure future action on the issue of climate change. 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.
With a focus on sustainability, responsible investing is integrated throughout the fund with a rigorous application of environmental, social and governance criteria. This is underpinned by:
external climate ratings through CDP and science-based targets (SBT1) 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.
Valérie Baudson, CEO of CPR AM, commented: “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. Climate change affects all geographies and sectors and we believe companies play a crucial role in ensuring the objectives set in the Paris Agreement are achieved. 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: “We are delighted to be working with CPR AM on this ground-breaking fund, especially at such a critical time for climate change globally. 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.”
ARTICLE VERSION FRANCAISE: CPR AM et CDP lancent le fonds Climate Action
CDP is an international non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. Voted number one climate research provider by investors and working with institutional investors with assets of US$87 trillion, we leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts. Over 7,000 companies with over 50% of global market capitalization disclosed environmental data through CDP in 2018. This is in addition to the over 750 cities, states and regions who disclosed, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving environmental change. CDP, formerly Carbon Disclosure Project, is a founding member of the We Mean Business Coalition.
About CPR Asset Management:
CPR Asset Management is a management company, approved by AMF, and a wholly owned subsidiary of the Amundi Group which is autonomous in its development and management.
CPR AM is dedicated exclusively to the management of the assets of third parties (institutional, corporate, insurance, private banks, fund managers and heritage professionals) in France and abroad. For nearly three decades, thanks to the commitment of its 100 employees, the company has developed a unique management philosophy regarding its main asset classes – equities, rates, credit, multi-assets.
The company strives to develop innovative and scalable solutions tailored to their customers’ needs.
CPR Asset Management, limited company with a capital of € 53 445 705 – Portfolio management company authorised by the AMF n° GP01-056 – 90 boulevard Pasteur, 75015 Paris – France – 399 392 141 RCS Paris.
CPR AM in figures: (End-September 2018)
– €47 billion in assets under management
– More than 100 employees, of which a third are involved in investment management
CPR Asset Management, a Limited Company with a capital of € 53,445,705 – AMF-approved asset management company no. GP 01-056 – 90
boulevard Pasteur, 75015 Paris – France – 399 392 141 RCS
About the thematic equities team:
Since 2015, CPR AM has been Amundi’s global thematic equity investment expertise centre and is one of Europe’s largest players in this area.
CPR AM’s thematic approach stems from the identification of the societal, demographic, economic, environmental and technological megatrends that mark our present and are shaping our future. With more than €8 billion in assets under management at the end of December and a rich range of open-ended and dedicated funds deployed worldwide, CPR AM has been a pioneer of major theme such as the ageing of the population or disruptive companies. Since 2017, the company has been developing a thematic range with an ESG dimension and impact investing on various strategies such as the food value chain, Education and Climate Change.
Led by Vafa Ahmadi, the head of thematic equity investment, the team of 12 investment professionals share their know-how in optimising and enhancing thematic investment management capabilities with a major ambition of ensuring the sustainability and development of existing and future thematic investment solutions that reconcile “meaning and quest for performance”.