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CDC - Caisse des dépôts et consignations

PRI reporting framework 2018

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Investment policy

SG 01. RI policy and coverage

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

01.1. Indicate if you have an investment policy that covers your responsible investment approach.

01.2. Indicate the components/types and coverage of your policy.

Select all that apply

Policy components/types

Coverage by AUM

01.3. Indicate if the investment policy covers any of the following

01.3a CC. Describe how your products or investment strategy might be affected by the transition to a lower-carbon economy.

The 2 ° C international target is included in all Caisse des Dépôts Group equity portfolios through the commitment to reduce the carbon footprint of CDC's portfolios by 20% between 2014 and 2017.


Indeed, this reduction target is in line with the carbon target of the European Union, submitted in its "Nationally Determined Contribution" (NDC's).

Work is also underway to refine the analysis of the alignment of equity portfolios with this objective. For instance, CDC excludes investment in companies exposed to more than 20% to thermal coal.


Investing in Transition assets enabled CDC to issue an Inaugural Green Bond in March 2017 (500 million EUR for 5 years) to accompany the ecological and energy transition in three sectors: real estate, generation of renewable energy for electricity and heat, and site rehabilitation / soil decontamination.
A specific reporting framework has since been elaborated for the Green Bond assets, including on avoided emissions of CO2, number of households supplied with green energy, direct employment sustained, and energy performance/energy savings (for real estate assets in construction and renovation).

01.3b CC. Describe how climate-related risks and opportunities are factored into your investment strategies or products.

By establishing targets on portfolios' decarbonation, coal divestment and investing in the low carbon economy, CDC is integrating climate-related risks and opportunities in it's investment strategy. We could also mention that the reporting on Green Bond assets includes the total volume of avoided
CO2 emissions.
In 2017, CDC realised it's first climate stress test. It was conducted with two scenarios (+2°C and +4°C).

01.4. Describe your organisation’s investment principles and overall investment strategy, and how they consider ESG factors and real economy impact.

CDC's Responsible Investment Charter sets out the guiding cross-divisional principles for the public
institution and its subsidiaries as responsible investors.
The principles cover the Group's responsible financing policy, its implementation by asset
management teams, and the processes for internal mobilization, external promotion and related
transparency. The key principles, i-e, systematic ESG integration, dialogue in a long term
perspective, and exclusion as part of an active approach to ethics, were drawn up and are applied
with regard to the Group's identity as a long-term investor serving the general interest. They are
intended to progressively apply to all its investment activities.
Thematic guidelines are added for themes of specific importance, such as governance guidelines,responsible tax guidelines and climate guidelines. The later develops specific commitments
regarding impacts on the environment: exclusion of thermal coal, investments dedicated to the
financing of the energetic and ecological transition, reinforcing shareholder engagement and
reducing the carbon footprint of its listed equity portfolios.

01.5. Provide a brief description of the key elements, any variations or exceptions to your investment policy that covers your responsible investment approach. [Optional]


SG 02. Publicly available RI policy or guidance documents

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

02.1. Indicate which of your investment policy documents (if any) are publicly available. Provide a URL and an attachment of the document.

02.2. Indicate if any of your investment policy components are publicly available. Provide URL and an attachment of the document.

02.3. Indicate if your organisation’s investment principles, and overall investment strategy is publicly available

02.4. Additional information [Optional].

The Green Bond Investment Framework - Fundamental principles of the issuance. The Green Bond Issuance Report (2017, publicly available: http://www.caissedesdepots.fr/green-bond-issuance-report ) contains additionnal information on the investment approach contributing to the environmental and energy transition.

 


SG 03. Conflicts of interest

03.1. Indicate if your organisation has a policy on managing potential conflicts of interest in the investment process.

03.2. Describe your policy on managing potential conflicts of interest in the investment process.

The Group has an ethical code, which is signed by all employees joining the institution. CDC
directors receive a dedicated training on managing conflict of interests.
Furthermore our asset management subsidiaries comply with related regulation. In particular, they
have a procedure in place to prevent conflict of interest and track occurence cases. A list of
"prohibited" listed shares is regularly udpated according to ongoing dealflow and portfolio holdings.
Potential conflicts of interests are overseen by the Compliance officers.

03.3. Additional information. [Optional]

CDC Group does not provide sell-side research or corporate banking services.


SG 04. Identifying incidents occurring within portfolios

04.1. Indicate if your organisation has a process for identifying and managing incidents that occur within portfolio companies.

04.2. Describe your process on managing incidents

          Processes are in place in some asset class for identifying incidents, such as external provider for
listed equities and fixed income, specific reporting clauses for external private equity funds. For
external funds, this clause cannot lead CDC to management the incident, which remains under the
fund managers' responsibility. 
In addition, CDC directors in Supervisory/ Executive Board are required to regularly monitor and report on incidents occurring in investee companies. The reporting chain of communication includes the wide dissemination to the internal entities within the CDC (Direction for Internal and Financial Risk Control).
        

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