Candriam
CANDRIAM is a global multi-specialist asset manager and an affiliate of New York Life, a Fortune 100© company. CANDRIAM joined the Net Zero Asset Managers Initiative in November 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
17% of total AUM (USD $23.2 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Portfolio decarbonisation reference baseline
108.64 t CO2/m$
WACI 2019 – Adjusted from AuM evolution: 108.64 t CO2/M$ revenues
(As some funds have been created after 2019 and AuM has evolved since then, we have calculated our baseline as an adjusted WACI taking the exact same AuM as today with 2019 WACI number. The raw number, that is partly driven by AuM effect is
94.50 t CO2/ M$ revenues).
Target(s):
Portfolio coverage target
Over 50% of financed emissions that are either “Net Zero” or “aligned with net zero pathway” by 2030.
Portfolio decarbonisation reference target
-50% by 2030, i.e. reaching 54.3 t CO2/m$
Engagement threshold target
Over 50% of financed emissions will be net zero or aligned by 2030.
By 2030, over 70% of financed emissions will have been successfully engaged (“net zero” status) or will be under engagement, either direct or collaborative. The 100 largest contributors to our financed emissions will be either “net zero” or will be under
direct engagement.
Reduction of 50% of the subportfolio WACI (t CO2/$M revenues)
Portfolio coverage target: at least 50% of our financed emissions coming from companies assessed as “Net Zero” or “Aligned to net zero pathway”
Engagement: engaging with 40 corporate that are top contributor to our NZ perimeter WACI by 2025, aiming for 70% of financed emissions by 2030.
GHG scopes included:
Current decarbonization targets only cover scope 1&2, but we plan to integrate scope 3 by 2025.
Temperature metric does integrate scope 3 in the way it is calculated.
Methodology:
Net Zero Investment Framework
Own/other methodology
Scenario(s):
IPCC SSP1-1.9
IEA SDS
Additional information
Proportion of AUM committed:
This preliminary perimeter has been defined taking into account the availability and consistency of carbon data on specific asset classes and the level of direct influence that we have on the investment management. This represents 60.5% of Candriam-branded Article 8 & 9 open-end mutual funds. We have made the decision to exclude mandates and funds managed for partners from the initial net zero scope but are aiming to conduct engagement with our clients and partners in order to increase progressively this perimeter in line with the objective of reaching 100% of our AuM by 2050.
Policy on coal and other fossil fuel investments:
Yes. Exclusion Policy. We exclude across all of our investments (100% AuM) companies that derive more than 10% of revenues from coal. We have even stricter exclusion policies in our SRI range of funds which are summarized in our exclusion policy with the link above.
Our SRI exclusion policy (that applies to our SRI funds) covers:
– Coal, with exclusion at 5% revenues or of companies developing new projects
– Unconventional oil & gas, with exclusion of companies with over 5% revenues
– Conventional oil & gas, with exclusion of companies with over 5% revenues, if they do not allocate >15% capex in low carbon solutions.
– Carbon intensive power generation, with exclusion of companies whose specific emissions from generation are above the IEA SDS threshold (374g CO2/kWh in 2022)
Further information:
A climate strategy including all new NZ targets and an evaluation of progress is being finalized and will be in November 2022.