Listed equities, fixed-rate bonds and inflation-linked bonds are integrally managed following our RI policy that combines best in class, norm-based exclusion and engagement (dialogue and active ownership). Asset managers have been required to give a specific focus on climate-related risk management.
Concerning private equity and private debt, we require asset managers to exclude businesses that would go against a 2°C trajectory, such as oil and gas infrastructure suppliers. Indeed, we disinvest from specialised companies due to their limited capacity to adapt their model to the ecological and energy transition. We also exclude companies with a heavily exposed to coal in our global portfolio. This negative screening is combined with a norm-based exclusion approach based on ESG principles which results in an average exclusion rate of 20-30% of the companies in the benchmark.
Regarding positive screening, investments in green bonds have increased in our portfolio and now represent € 542 million investment (4,9% of AUM). For sovereign bonds, we prioritize investment in countries with consistent policies on education, preservation of the environment and governance.
Relating to the thematic strategy, the pension scheme is invested in a SICAV, Phitrust, a specialist investor for engaging companies.
Even though we have a best in class approach, some of our investment manager use integration.
In 2019, Ircantec plans to invest € 50 million in energy transition open funds (trade off following the equity oil and gas divestment).