By enhancing collaboration in the investment chain, we have devised the following investment solutions that nurture our low-carbon investment policy :
- Development of an active low-carbon bespoke mandate with one of our asset managers based on a €1 bn listed equity fund. This fund is not a low carbon investment fund but a low carbon economy fund, targetting to favor the companies which are, regarding their climate strategies, best in class, best effort or solution providers.
- Development of an ESG "risk-based" filter with another asset manager screening out companies which are considered having an average grade on ESG but have breaches on crucial issues regarding the economic sector.
- We request an enhanced focus from our asset managers on assets financing the energy transition: green bonds have increased in our portfolio, reaching € 542 million (4,9% of AUM).
Furthermore, the pension scheme unveils an ambitious action plan in line with its socially responsible investment approach. Thus, Ircantec intends to:
- Divest from traditional oil and gas sector bonds and reallocate the proceeds to green bonds.
- Divest from specialised oil and gas companies due to their limited capacity to adapt their model to the ecological and energy transition, as well as in non-European equities and integrated companies whose investment expenditure is not compatible with a 2°C trajectory. The proceeds will be reinvested in green funds.
- Recalculate its strategic asset allocation over the next two years so as to be able by 2020 to review its exposure to the oil and gas sector based on its alignment with a 2°C trajectory.
Meanwhile, over those two years Ircantec will pursue its engagement through the Climate Action 100+ initiative, the PRI and any other identifiable means.