The plan sets out objectives for both savings and investment for clients and Amundi’s engagement policy with companies. ESG objectives will be included in the remuneration of its senior executives, and Amundi, Europe’s largest asset manager, will also present its climate strategy to its shareholders
The strategy is part of the Crédit Agricole Group’s Societal Project, and is based on three objectives: First, to ensure that its savings solutions offering goes further in terms of responsible investment. Second, to call upon more companies to define credible alignment strategies for the net zero 2050 objective and third, to ensure the support of its employees and shareholders in its ambitions.
“The action plan that we developed in 2018 was based on the principle that an asset manager’s task is not only to invest in the world as it is but also as it should be, with two major themes: climate change and social inequalities,” Valérie Baudson, chief executive officer of Amundi, said in a statement.
For its savings and technology solutions, Amundi commits to introducing a new environmental transition rating that assesses companies’ efforts in decarbonising their operations and the development of their sustainable activities, covering €400bn ($453.21bn) of actively managed open funds.
It will also offer open funds in all asset classes with a net zero 2050 investment objective, while reaching €20bn in assets in impact funds that will invest in companies that seek positive environmental or social performance. It will ensure that 40% of its range of passive funds is made up of ESG funds.
Amundi will also develop “Alto Sustainability”, a technology analysis tool designed to support investors in decision-making regarding the environmental and social impact of their portfolio.
In terms of voting and engagement with companies, Amundi will work with 1,000 additional companies to define credible strategies for reducing their greenhouse gas emissions, to vote at their annual general meetings and for management remuneration packages to be linked to these strategies. From 2022, it will exclude from its portfolios companies that generate over 30% of their activity from unconventional oil and gas production.
Amundi said it will apply to its own business what it asks of other companies, such as taking into account the level of achievement of these ESG objectives in the key performance indicators calculation for its 200 senior executives. The firm will set ESG targets for all portfolio managers and sales representatives.
The firm aims to reduce its own direct greenhouse gas emissions by approximately 30% (vs. 2018) per employee in 2025
“The acceleration of our ESG commitments will be Amundi’s primary growth lever around the world,” Baudson said.