La Banque Postale Asset Management

Baseline(s):

Target(s):

GHG scopes included:

The latest SBTi criteria for companies to set Scope 1 and 2 targets, as well as Scope 3 targets where their Scope 3 emissions are material, are applied where possible.

Methodology:

Science Based Target initiative for Financial Institutions

Scenario(s):

IPCC special report on global warming of 1.5°C

80% of total AUM (USD $75 billion)

Proportion of AUM committed:

LBP AM group aims to achieve carbon neutrality for its portfolios by 2050. An interim target has been set : 80% of the group’s total assets under management will be aligned with a trajectory compatible with the Paris Agreement by 2030, then 100% by 2040. This strategy is based on the SBTi Portfolio Coverage methodology, which identifies issuers with targets validated by the SBTi.

Policy on coal and other fossil fuel investments:

This overall alignment trajectory of the LBP AM group’s assets is complemented by the sub-objective, independently established within the framework of its sectoral policy and in support of the aforementioned overall objective, of achieving 100% of total assets under management with a greenhouse gas emissions trajectory compatible with the Paris Agreement’s objectives in the oil and gas sector by 2030. The sectors involved in the energy supply are indeed particularly critical to the transition of the real economy, which also and simultaneously involves a major evolution of energy demand.

As part of its sectoral policies, which aim notably to limit the exposure of all its entities to companies with the most serious and irremediable impacts on the climate, the LBP AM group has defined thresholds for the exclusion of investments in issuers that have not committed to the energy transition, or exploit resources that are the most damaging to the environment.

Coal : LBP AM group’s coal policy is based on exclusion and engagement. 100% of open-end funds covered by the policy. The thermal coal exclusion policy aims for a total end to investments in mining or electricity production companies that have not committed to eliminating thermal coal from their operations by 2030 (for companies headquartered in an OECD country) and by 2040 (rest of the world). Issuers currently engaged in thermal coal development projects or expansion of existing projects are systematically excluded. Other exclusion criteria, based on activity thresholds, are established according to the type of companies and are waivable if the company has implemented a credible exit plan.

Oil & Gas : The LBP AM group’s sectoral Oil & Gas policy on investments in companies and project companies operating (exploration, exploitation, processing, transportation, refining, distribution activities, directly or as a partner or shareholder) in the oil and gas sector, defines the principles applicable by the Group to align its sectoral allocation in the oil and gas sector by 2030 with the objective of carbon neutrality by 2050, by: Promoting and supporting the orderly and just energy transition of the real economy ; necessary to achieve the goals of the Paris Agreement ; Contributing to the management of climate financial risks – transition risks, legal risks, and physical risks – for their own portfolios. The “oil and gas” policy excludes companies whose 20% or more of revenue comes from unconventional energies. Companies that do not have the capacity to carry out their energy transition by 2030, as they currently do not have a carbon neutrality goal for scope 1 and 2 emissions or a GHG reduction goal for scope 3 emissions, are also excluded.