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Federal Finance

PRI reporting framework 2018

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

New selection options have been added to this indicator. Please review your prefilled responses carefully.

13.1. Indicate if your organisation executes scenario analysis and/or modelling in which the risk profile of future ESG trends at portfolio level is calculated.

Is this scenario analysis based on a 2°C or lower scenario?

SG 13.1a CC. Pleased describe the resilience of your organisation’s strategy, considering different future climate scenarios.

Strategy affected
Changes to strategy
Description of scenario and time-horizon
How analysis has been used
          For specific mandates
          Disinvestment of coal-related companies
          Exclusion of companies involved in the coal industry : eg sales > 30% in coal or >30% energy production from coal. Companies financing new coal facilities.
          Investment in companies that do not respect new requirements are frozen. We decide to sell the shares. For bonds, funds managers try to sell them in the best market condition our keep them until their maturity.

13.2. Indicate if your organisation considers ESG issues in strategic asset allocation and/or allocation of assets between sectors or geographic markets.

We do the following

13.3. Additional information. [OPTIONAL]

SG 14. Long term investment risks and opportunity

14.1. Describe the process used to identify short, medium and long-term risks and opportunities that could have a material impact on your organisation and its activities.

We try to include SDG's in our ESG analysis. Our approach is to focus on megatreds that can impact investments :

digitalization, urbanization, demography, climate change, access to resources

For each sector, we have determined the impact of that these megatrends could have on the sustainability of business. These megatrends could also help us to identify business opportunities.

14.1 CC. Describe the processes used to determine which climate-related short, medium and long-term risks and opportunities could have a material impact on your organisation and its activities.

As mentionned above, climate change is one of the megatrends that we have identified. Related risks and opportunities are assessed for each sector tha we cover.

14.2. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following you act on.

14.2a cc. Please describe how you define “short”, “medium” and “long term”, and describe your material climate-related issues over these time horizons.

Description of material climate-related issues
Short term
          Companies involvment and transparency
          Companies that do not take into account climate change are at risk in a 2° world.
Medium term
          CO2 intensive companies
          We believe that high emitting companies will have to pay for their emissions. Their profitability is at risk if they don't change the way they operate.
Long term
          green products and services
          Investment opportunities will araise with credible solution towards climate change's issues.

14.3. Indicate which of the following activities you have undertaken to respond to climate change risk and opportunity

other description

          Development of a dedicated Low Carbon methodology. We assess companies' performance regarding their CO2 emissions and the actions taken to reduce them.

14.4. Indicate which of the following tools you use to manage emissions risks and opportunities

other description (1)

          Tax optimization

14.4a CC. Please provide further details on these key metric(s) used to assess climate related risks and opportunities.

Metric Type
Metric Unit
Metric Methodology
Metric Trend
Limitations / Weaknesses
Weighted average carbon intensity
          a majority of our assets under management
Carbon footprint (scope 1 and 2)
          a majority of our AuM
          doesn't take the scope 3 into account
Portfolio carbon footprint
          a majority of our AuM
Carbon intensity
          a majority of our AuM
          Compute the average CO2 emissions of a portfolio per million of sales
          Teq CO2
          portfolio weight of the stake in company*(Co2 emissions of the company/ company's sales)
          not available
Exposure to carbon-related assets
          a majority of our AuM
          identify high emitting companies
          CO2 emissions / sales
          not available
          some sectors like utilities, energy, transportation

14.6. Additional information [Optional]

14.7 CC. Describe your risk management processes for identifying, assessing, and managing climate-related risks.

Please describe

For mandates and portfolios that do have climate-related constraints, our risk management team monitors the respect of these constraints. Each week, they screen portfolio and mandates to be sure that limits are respected. If not, an alert is sent to portfolio managers.

14.8 CC. Describe your processes for prioritising climate-related risks.

We have prioritised climate-related risks regarding their financial materiality. Risks that can have an impact on financial valorisation are given more importance.

14.9 CC. Do you conduct engagement activity with investee companies to encourage better disclosure and practices around climate-related risks?

Please describe

In accordance with our engagement policy, we will engage with companies that do not respect our ESG requirement. A low level of disclosure can be a reason to launch engagement.

Recently, we took part in the Climate Action 100+ initiative to engage with companies and to apply TCFD recommendations.

14.10 CC. Describe how you use data from climate-related disclosures.

Those data are implemented in our ESG rating tool.

SG 15. Allocation of assets to environmental and social themed areas (Private)