La Française Asset Management
For more than 40 years, La Française group has been developing core competencies in third party asset management based on a multi-affiliated business model organized around two core activities: the management of Financial Asset and the Real Estate. La Française AM is the historical management company of the group. At the heart of the Financial Assets activity, La Française AM offers expertise in fixed income management (fixed maturity funds, subordinated debt, absolute performance, monetary), SRI equity management and balanced management (direct investment, funds of funds with an open architecture and mixed format direct investment and funds of funds).
Since 2015, La Française AM offers Carbon Impact strategies on several asset classes (equity, credit, sovereign debt, cross asset) focused on climate change. Those diversified strategies aim to participate in the energy transition across all industries and all geographies by influencing potentially every sector of the energy transition.
La Francaise AM joined the Net Zero Asset Managers Initiative in October 2021 and made its Initial Target Disclosure in November 2022.
Percentage of assets covered by the Net Zero Asset Managers Commitment Statement
44% of total AUM (USD $5.25 billion)
Information on interim target(s) covering the proportion of assets to be managed in line with net zero
Baseline(s):
Scope 1&2 (2021) : 1,65°C
Scope 1&2&3 (2021) : 2,02°C
Target(s):
La Francaise AM (LFAM) have decided to have targets in line with the requirements of the SBTi. LFAM cover both Scopes 1&2 and Scopes 1&2&3 and we selected two time stamps: 2025 and 2030. Scope 1&2: 2025: 1.62°C 2030: 1.58°C Scope 1&2&3: 2025: 1.96°C 2030: 1.89°C
GHG scopes included:
LFAM have decided to have two targets, in line with the recommendations of the Science Based Target Initiative. One target covers scopes 1&2 and another one covers scopes 1&2&3
Methodology:
Science Based Target initiative for Financial Institutions
Own/other methodology
Scenario(s):
1.5C for scope 1&2.
Well-below 2°C for scope 1&2&3.
The SBTi is in the process to update their methodology and the scenarios they use. LFAM will update our targets accordingly
Additional information
Proportion of AUM committed:
LFAM exclude the dedicated funds as we need to work out with our clients beforehand; LFAM do exclude the funds of funds as well as the absolute return funds as methodologies are not yet developed enough to deal with these types of funds; LFAM will make sure to increase the percentage to AuM covered to include all funds where LFAM have:
– Influence over the investment decisions
– Available and stable methodologies to deal with in our next submission in 2023
Policy on coal and other fossil fuel investments:
LFAM have set an exclusion policy on coal and unconventional fossil fuel, which LFAM consider in line with the net zero requirements. This exclusion policy covers the assets of La Francaise AM, La Francaise SAM and New Alpha AM, excluding all index funds, funds of funds and some dedicated funds when the client disagrees with the policy.
Further information:
La Française – Sustainable Investment and Climate Report 2021