All climate related risks are identified and factored in the equity investment analysis, which we call climate impact analysis. This type of analysis is increasingly part of the fixed income investment strategy as well.
The climate impact analysis incorporates carbon exposure, management and transition. And as such we look at the following risks:
- Regulatory risks: particularly when they imply carbon-pricing schemes.
- Physical risks: this is done at the asset level.
- Transition: we assess how companies are best aligned with a low carbon trajectory.
As far as the climate-related opportunities are concerned, they are definitely part of the investment analysis. La Francaise Group through its investment analysis identifies companies which benefit from climate-related opportunities. Therefore, the group identifies:
- Low carbon emissions intensity.
- Use of renewable energy.
- Low carbon solutions, looking at the entire value chain.
Regarding real Estate, La Francaise Group incorporates both climate-related risks and opportunities. We take into account in our investment strategy the carbon footprint, the energy efficiency and the performance improvement upside.