Climate
We strongly believe that investors have a role to play in building a sustainable future and as such have set an ambitious target: 80% of our total AuM will be aligned with a decarbonisation target compatible with the objectives of the Paris Agreement by 2023.
Our climate levers
1. Shareholder engagement
LBP AM helps its investee companies define and advance along their decarbonisation path.
2. Exclusions and a targeted selection strategy
LBP AM does not invest in companies that generate more than 20% of their revenue from non-conventional energies or companies that have not yet begun their energy transition.
LBP AM has also developed a complex analytical tool that integrates greenhouse gas reduction targets, business model changes and sound governance in its asset selection.
3. A consistent and diversified offering
Through various funds, including LBPAM ISR Actions Environnement, Tocqueville Global Climate Change ISR and the LBPAM Infrastructure Debt Climate Impact Fund, the LBP AM Group contributes to financing energy transition solutions. More generally, all our funds are committed to decarbonisation, with the aim of achieving a trajectory compatible with the objectives of the Paris Agreement by 2030.
Preparing for a post-fossil fuel world
LBP AM's investment policy on fossil fuels is based on two principles:
- reducing the risks attached to high-carbon energy assets, either by directly reducing exposure or by optimising the choice of companies and sectors in the portfolio;
- promoting the shift away from fossil fuels by supporting companies engaged in the energy transition or by increasing investments in companies that are developing solutions.
Expanding exposure to companies that are limiting their use of fossil fuels (coal, oil and gas) is a first step; more specific targets for energy-intensive sectors will be added later.
Robust tools
LBP AM has developed [robust analysis and evaluation tools] (alignment, sustainability) to help it achieve its ambitious targets, in addition to acquiring external databases that track companies' climate performance. The climate targets set by individual companies are also verified by the Science Based Targets initiative to ensure that they are compatible with the CO2 emission reduction scenarios required to meet the objectives of the Paris Agreement.
