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CNP Assurances

PRI reporting framework 2020

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ESG incorporation in actively managed listed equities

Implementation processes

LEI 01. Percentage of each incorporation strategy

01.1. Indicate which ESG incorporation strategy and/or combination of strategies you apply to your actively managed listed equities; and the breakdown of your actively managed listed equities by strategy or combination of strategies.

ESG incorporation strategy (select all that apply)

Percentage of active listed equity to which the strategy is applied — you may estimate +/- 5%
100 %
Total actively managed listed equities 200%

01.2. Describe your organisation’s approach to ESG incorporation and the reasons for choosing the particular strategy/strategies.


CNP Assurances has chosen to align its equity portfolio by the end of 2018 on indices deployed in collaboration with La Banque Postale Asset Management (LBPAM) and Mirova (Natixis Investment Managers). The objective of CNP Assurances is that the management of directly held shares be aligned with these indices, which strongly weight the contribution to the energy and ecological transition. These new indices allow us to overweight the TEE within the ESG criteria already taken into account by selecting the most advanced companies on this issue of the TEE and the fight against climate change. They are defined and calculated by LBPAM and Mirova, taking into account the particularities of the ISR and TEE ratings of each MA, based on the needs and orientations set by CNP Assurances. The portfolio alignment decided in 2017 aims to bring the portfolio closer to a 2 ° C scenario and to measure progress.

CNP Assurances determines the list of exclusions and securities under surveillance (countries and companies) largely on the basis of work done by the SRI experts at the Ostrum AM and LBPAM asset management companies, as well as on indices in the public domain.
Two exclusion criteria are applied:
Country exclusion: Several criteria are taken into consideration: the exclusion policy is based on lists drawn up by the French government and the European Union and tax haven indices from the Tax Justice Network.
Freedom House and Transparency International lists are also consulted, for countries with serious problems regarding democracy, human rights and corruption.
Securities exclusion: Three types of securities exclusions have been defined:
■ Since 2008, CNP Assurances has chosen to exclude equities issued by arms manufacturers whose products include anti-personnel mines or cluster munitions from its portfolios.
■ As part of the ESG analyses described below, CNP Assurances receives alerts on corporate ESG risks corresponding to failure to comply with the fundamental principles of the Global Compact.
■ the Group has also excluded any new investments in companies mining coal or producing coalbased energy if more than 10% of their revenue is derived from thermal coal. it is also committed to no longer invest in the companies most involved in the development of new coal power plants.

Among existing assets, the rules confine financial assets to companies deriving more than 20% of their revenue from this sector. As this exclusion is linked to the strategy of supporting the energy and environmental transition, it is dealt with in a specific section.

01.3. If assets are managed using a combination of ESG incorporation strategies, briefly describe how these combinations are used. [Optional]

Our core business is life insurance. To provide an annual return to our policyholders, financial management is benchmarked. The Best-in-class approach is the one that best meets this constraints. It is

Since 2017, the alignment of equity portfolio with model portfolios including European values compatible or accompanying the energy transition, model portfolios deployed in collaboration with the Bank Postale asset management ( (LBPAM) and Mirova (Natixis investment managers) is added. The objective of CNP assurances is that the management of the listed equity portfolio is aligned with these portfolios, which strongly weights the contribution to the energy and ecological transition.

We have a screening strategy that includes the exclusion of the anti-personnel mines and cluster munitions industries. More globaly we also exclude companies that do not respect the Global Compact principles.

We established a list of sensitive countries in which we do not invest, for risks of non democratic, non liberty, corruption or tax heavens

In our climate strategy, we also do not invest in coal industry: since 2015 we do not hold any shares or more bonds listed companies which carry more than 20% of their turnover in a thermal coal-related activity.


LEI 02. Type of ESG information used in investment decision (Private)


LEI 03. Information from engagement and/or voting used in investment decision-making (Private)


(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by

Description

Since 2008, CNP Assurances has excluded manufacturers of cluster munitions and anti-personnel mines. We exclude companies that do not respect the Global Compact principles, countries that we listed as sensitives and companies that derive more than 10% of their turnover from coal (and 20% for titles already held by CNP Assurances since the end of 2019).  It is also committed to no longer invest in the companies most involved in the development of new coal power plants.

Screened by

Description

Equities have been monitored on a quarterly basis since 2006 with ESG analysts at Natixis AM and since 2009 at LBPAM. Constructive dialogue is engaged with investee companies whenever a problem is revealed during the quarterly screening process via our asset managers or during the lead-up to General Meetings. This process is repeated year after year, given the long investment horizons.

When dialog fails to produce results, other increasingly severe measures may be taken, from not making any follow-up investments to selling the entire stake.

 

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

The screening is established with the rating for each company conducted by the SRI team of our asset managers. This rating is submitted quarterly by each asset manager. It explains the evolution of the new analysis and compared with the financial and SRI benchmark.
Our investment policy is updated every year. It is posted on our website via the sustainable investment report which explain methodologies and criteria.
 


LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

          The analysis is done by 2 differents ESG research team (one for each of our asset managers) and they also use extra-financial agency ratings.
        

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.5. Additional information. [Optional]

The ESG research teams is present at the quaterly comitee and explain their analysis.


LEI 06. Processes to ensure fund criteria are not breached (Private)


(C) Implementation: Integration of ESG factors

LEI 08. Review ESG issues while researching companies/sectors

08.1. Indicate the proportion of actively managed listed equity portfolios where E, S and G factors are systematically researched as part of your investment analysis.

ESG issues

Proportion impacted by analysis
Environmental

Environmental

Social

Social

Corporate Governance

Corporate Governance

08.2. Additional information. [Optional]

CNP assurances asks the ESG research team of its asset managers to always review the E, S and G issues. They provide analysis and separate rating on these three criterias.
 


LEI 09. Processes to ensure integration is based on robust analysis

09.1. Indicate which processes your organisation uses to ensure ESG integration is based on robust analysis.

09.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your integration strategy.

09.3. Indicate how frequently third party ESG ratings that inform your ESG integration strategy are updated.

09.4. Indicate how frequently you review internal research that builds your ESG integration strategy.

09.5. Describe how ESG information is held and used by your portfolio managers.

09.6. Additional information. [Optional]


LEI 10. Aspects of analysis ESG information is integrated into (Private)


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