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From Risk to Opportunity: Amundi is Leading a Sea-Change in Asset Management

On the 09/02/19 at 3:36PM

Amundi is establishing industry-leading best practices to meet the needs of its clients with a finance for today, and tomorrow.

Deep roots in forward thinking

On the 8th of October 2018, short­ly before current debates reached their fever pitch, Europe’s largest as­set manager[1]announced an ambitious three-year action plan to extend it’s responsible investment approach both in terms of breadth and depth. While one might be forgiven for thinking it a response to current events, the action plan is actually a carefully thought-out expression of the company’s DNA that has been thoroughly prepared —indeed, one of Amundi’s foundational pillars is responsible investment.

Now, Amundi is making a bid to bring responsible investing to a whole new level on a completely new scale, applying rigour and transparency to three main areas: mainstreaming ESG investing, fostering innovation and accompanying and advising investors.

Knowledge is power

The company developed and continues to refine a proprietary methodology for ESG analysis involving 36 ESG criteria. It aims to cover 100 per cent of the more than 8,000 issuers in its investment uni­verse by 2021.

Furthermore, Amundi has taken the innovative step of ‘ESG benchmarking’. The 2021 action plan calls for each fund’s benchmark index to be scored for ESG based on its weighted holdings. All actively managed funds—representing close to €1.4 trillion in assets[2] —will be required to outperform the ESG score of their benchmark index.

Alongside this transparent and systematic selection process, Amundi is committed as an inves­tor to promoting positive change in the marketplace as a whole through voting and engagement. As Europe’s largest asset manager1, Amundi is in a position to bring to bear consider­able weight as a shareholder. The three-year action plan calls for 100 per cent of voting activity to integrate ESG issues. Given that Amundi vot­ed at over 2,500 General Meetings in 2018, this represents an enormous commitment.

Investing in change

In addition, Amundi will continue to develop new vehicles that allow inves­tors to bring their investments in line with their most important values. The company, which is already a leader in ESG funds, rated A+ by the UN’s Prin­ciples for Responsible Investment (PRI) and the winner of multiple SRI awards[2], will concentrate on three broad areas.

In the context of international pressures to combat the global climate crisis, climate change is naturally a major concern. Here, Amundi favours instruments that stimulate supply as well as demand, such as green bond funds, in order to build a thriving marketplace around responsible investment. Social impact investing is another area where Amundi is looking to increase considerably, capitalizing on its experi­ence and pipeline as the number 1 social impact investor in France[4] to expand geographically so that international clients can make an impact in their own backyard.

Last, but by no means least, the company is committed to doubling its footprint of passively managed ESG funds.

Bringing Investors up to speed

To resolve the root problem of clarify­ing what responsible investment means on the international stage, Amundi contributes to the public square, publish­ing research by its in-house team of ESG analysts and sponsoring the Medici Com­mittee, a think tank devoted to address­ing major societal challenges through the lens of finance. More directly, the com­pany works hand in hand with clients to help them identify their values and associate them with tailored investment solutions.

The world of responsible investment is in the midst of a major shift, as world leaders emphasise the role of finance in achieving a sustainable global economy that creates value for the present and for future generations. Amundi’s three-year action plan for 2021 announces the com­pany’s intention to lead by example, by broadening the scope of application for ESG analysis and by increasing the range of specialized offerings available to institutional and private investors.

 

To find out more about Amundi Asset Management: https://www.amundi.com/int/ESG

Written by EBM agency for Amundi Asset Management.

Disclaimer

This document is not intended for citizens or residents of the United States of America or to any «U.S. Person» , as this term is defined in SEC Regulation S under the U.S. Securi­ties Act of 1933. Amundi accepts no liability whatsoever, whether direct or indirect, that may arise from the use of information contained in this material. Amundi can in no way be held responsible for any decision or investment made on the basis of information contained in this material. The information contained in this document shall not be copied, reproduced, modified, translated or distributed without the prior written approval of Amundi, to any third person or entity in any country or jurisdiction which would subject Amundi or any of “the Funds”, to any registration requirements within these jurisdictions or where it might be considered as unlawful. Accord­ingly, this material is for distribution solely in jurisdictions where permitted and to persons who may receive it without breaching applicable legal or regulatory requirements. The information contained in this document is deemed accurate as at 31 July 2019. Data, opinions and estimates may be changed without notice. Document issued by Amundi Asset Management, a French “société par actions simplifiée”- SAS with capital of 1 086 262 605 euros - Portfolio Management Company approved by the AMF under number GP 04000036 – Registered office: 90 boulevard Pasteur – 75015 Paris – France – 437 574 452 RCS Paris - www.amundi.com

 

[1] Source: Finansol, based on AUM of the social impact fund managed by Amundi

[2] Amundi Figures as of end June 2018.

[3] Among awards, the most recent one is 1st place in the SRI & Sustainability ranking published by Extel and UKSIF in the Asset Management Best Firms category for SRI/ESG.

[4] Source: IPE “Top 400 asset managers” published in June 2018 and based on AUM as of end December 2017.

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