Based on the experience of NGOs' CDPs, the Climate Action Fund seeks to outperform the stock market by investing in international actions of companies committed to limiting the impact of climate change, while integrating ESG criteria into the investment process …
Continuing its commitment to environmental, social and governance (ESG) issues, CPR AM has joined CDP by launching its new international capital Climate Action, a sub-fund of the Luxembourg investment fund CPR Invest. the fight against global warming. The fund is run by Alexandre Blein and Arnaud du Plessis.
The aim of this new thematic strategy is to identify and invest in companies that are committed to limiting the impact of climate change, regardless of their sector of activity. "With CPR Invest – Climate Action, we are mainly trying to invest in the most profitable companies in terms of energy transition, those who take climate risk into account in their strategy, and are committed to reducing their emissions of greenhouse gases (GHGs) to keep global temperatures below 2 ° C until 2100 ”,
In order to identify the most advanced climate companies, CPR AM is an exclusive partnership with CDP, international non-profit NGOs, directory and pioneers in publishing company carbon data, and only such service providers are in line with TCFD recommendations that supports the balance between climate issues, financial resources and economic outcomes. CDP is the most comprehensive database of self-regulated environmental data in the world, and over 7,000 companies in 2018 responded to its questionnaires.
This unprecedented collaboration reinforces CPR AM's commitment to promoting green transition for businesses, regardless of size or performance. By integrating environmental data from CDP, CPR AM will be able to assess the company's ability to create an economic value that matches the objectives of the Paris Agreement.
The start-up universe is the MSCI World All Countries index, about 2800 stocks. In order to create an appropriate investment universe that is directly related to its thematic strategy, management is based on a triple-off filter that makes it possible to clearly identify the most advanced companies in the climate:
- First filter based on CDP notesaims to exclude companies with non-A and B ratings (considered the most valuable) by upgrading C-rated companies that have adopted Science Base Objectives  ;
- The second filter is based on Amundi's off-budget analysis office ratings and aims to exclude companies with the highest environmental, social and governance behavior (ESG). Any company that evaluates F or G to the total score, or E and G, or one of the environmental criteria (E) will be excluded;
- Finally, the third filter is used exclude companies subject to serious disputes over ESG issues.
The chosen investment universe – about 700 stocks reflect the best environmental practices in all countries and industries. The management team then applies its traditional management process, which combines two-level quantitative analysis, in-depth fundamental analysis and risk management. The final portfolio has about 60 to 90 stocks, creating the best financial and climatic profiles.
Valérie Baudson, CEO of CPR AM, emphasizes: "Climate action is positioning itself as a unique and innovative investment solution for managing climate-related financial risks. Limiting global warming requires a joint commitment from private, public and associate members. We believe that entrepreneurship plays a key role in achieving the goals set by the Paris Agreement. we take our responsibility very seriously in trying to influence companies at our level so that they adopt more positive practices and ultimately lead to stronger financial results. ".
Laurent Babikian, Investment Director, CDP Europe comments: "We are happy to work with CPR AM on this innovative fund, especially today, because the urgency of climate change is becoming critical. Corporate environmental transparency is essential, and markets need to be systematically taken into account and valued to better allocate capital to more favorable companies. that information on company climate indicators is expected not only in the market, but also in integrated investment decisions, in this case the choice of securities..