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La Française Group

PRI reporting framework 2019

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ESG issues in asset allocation

SG 13. ESG issues in strategic asset allocation

13.1. Indicate whether the organisation undertakes scenario analysis and/or modelling and provide a description of the scenario analysis (by asset class, sector, strategic asset allocation, etc.).

Describe As part of the pilot group of the UNEP FI on implementing the TCFD recommendations we do use scenarios to assess future climate related risks and opportunities in the form of a climate VaR (Value at Risk).

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]

We will have access to the VaR tool more widely in 2019 and will be able to test using it in strategic asset allocation.

La Française is managing overwhelmingly pure asset funds, only a limited number of funds are invested into both stocks and bonds


SG 13 CC.

13.4 CC. Describe how the organisation is using scenario analysis to manage climate-related risks and opportunities, including how the analysis has been interpreted, the results and any future plans.

Describe

We got the first results of the Climate Value at Risk at the end of 2018. At this stage, we therefore consider such metrics as additional forward-looking indicators that are certainly useful in challenging existing investment beliefs. A measure like the Climate VaR enriches our analytic capabilities rather than replacing existing tools and metrics.

Describe

We got the first results of the Climate Value at Risk at the end of 2018. This will specifically inform our dialogue with companies over the course of 2019.

13.5 CC. Indicate who uses this analysis.

13.6 CC. Indicate whether the organisation has evaluated the impacts of climate-related risk, beyond the investment time-horizon, on the organisations investment strategy.

Please explain the rationale

We are only in the first steps of the scenario analysis

13.7 CC. Indicate whether a range of climate scenarios is used.

Indicate the climate scenarios the organisation uses.
Provider
Scenario used
IEA
IEA
IEA
IEA
IEA
IRENA
Greenpeace
Institute for Sustainable Development
Bloomberg
IPCC
IPCC
IPCC
IPCC
Other

Other (1) please specify:

          PIK REMIND model
        
Other

Other (2) please specify:

          IEA Reference Technology Scenario (RTS)
        
Other

SG 14. Long term investment risks and opportunity

14.1. Some investment risks and opportunities arise as a result of long term trends. Indicate which of the following are considered.

other description (1)

          Patents
        

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

Specify the AUM invested in low carbon and climate resilient portfolios, funds, strategies or asset classes.

Total AUM
trillions billions millions thousands hundreds
Currency
Assets in USD
trillions billions millions thousands hundreds

Specify the framework or taxonomy used.

AuM as of Dec 31, 2018.

We do use the Weighted Average Carbon Intensity as recommended by the TCFD and the Portfolio Carbon Footprint as well.

 

14.3. Indicate which of the following tools the organisation uses to manage climate-related risks and opportunities.

other description

          Development in terms of capacity and capex when available
        

14.5. Additional information [Optional]


SG 14 CC.

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

Metric Type
Coverage
Purpose
Metric Unit
Metric Methodology
Climate-related targets
          forward looking metric
        
          tCO2e/production unit
        
          reported by companies – we assess the ambition and progress
        
Carbon footprint (scope 1 and 2)
          benchmark performance within companies
        
          tCO2e/M€ invested
tCO2e/M€ sales
        
          We use our own methodology to calculate
        
Portfolio carbon footprint
          benchmark portfolios
        
          tCO2e/M€ invested
tCO2e/M€ sales
        
          We use our own methodology to calculate
        
Carbon intensity
          accounts for the size of the companies
        
          tCO2e/M€ sales
        
          We use our own methodology to calculate
        
Exposure to carbon-related assets
          measure exposure to risky assets
        
          % of investments
        
          % of revenues from brown assets
        

14.7 CC. Describe in further detail the key targets.

Target type
Time Frame
Description
Attachments
          
        
          The fund carbon footprint (Scope 1 and 2) must be at minimum 50% lower than its benchmark carbon footprint
        

          
        
          
        

          
        
          
        

          
        
          
        

          
        
          
        

14.8 CC. Indicate whether climate-related risks are integrated into overall risk management and explain the risks management processes for identifying, assessing, and managing climate-related risks.

Please describe

14.9 CC. Indicate whether the organisation undertakes active ownership activities to encourage TCFD adoption.

Please describe

On the metrics to be reported under TCFD recommendations:

- We have signed the CDP non disclosers campaign for 2018.
- We have set up a specific voting policy for companies in carbon intensive sectors that do not report to CDP

On the adoption of TCFD guidelines:

- We encourage them within our discussions with companies

- We are part of a pilot group of the UNEP FI on the implementation of TCFD recommendations among investors


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

15.1. Indicate if your organisation allocates assets to, or manages, funds based on specific environmental and social themed areas.

15.2. Indicate the percentage of your total AUM invested in environmental and social themed areas.

3 %

15.3. Specify which thematic area(s) you invest in, indicate the percentage of your AUM in the particular asset class and provide a brief description.

Area

Asset class invested

1 % of AUM

Brief description and measures of investment

La Française has launched a thematic fund around energy transition that includes cleantech as a core investment theme

Asset class invested

2 % of AUM

Brief description and measures of investment

La Française has built a dedicated set of property funds certified by GRESB 

15.4. Please attach any supporting information you wish to include. [OPTIONAL]



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