Listed equities, fixed-rate bonds and inflation-linked bonds are integrally managed following our RI policy that combines best in class, norm-based exclusion and engagement (dialogue and active ownership). Asset managers have been required to give a specific focus on climate-related risk management.
Concerning private equity and private debt, we require asset managers to exclude businesses that would go against a 2 degree target, such as oil infrastruture suppliers. We also exclude companies with a heavily exposed to coal in our global portfolio. This negative screening is combined with a norm-based exclusion approach based on ESG principles which results in an average exclusion rate of 20-30% of the companies in the benchmark.
Regarding positive screening, investments in green bonds have increased in our portfolio and now represent €330 million investment. For sovereign bonds, we prioritize investment in countries with consistent policies on education, preservation of the environment and governance.
Even though we have a best in class approach, some of our investment manager use integration.