Climate : our commitments for the energy transition

/ Our SRI Conviction / Climate : our commitments for the energy transition

A key objective

Our goal: By 2030, 80% of our total assets under management will be aligned with a decarbonisation target compatible with the goals of the Paris Agreement. Our ambition: 2050: carbon neutrality for all our portfolios. With this cross-functional and highly determined pathway to decarbonisation for all our portfolios, we have highlighted our aim of making the climate criterion the central focus of our portfolio management.

We have undertaken to be transparent on the methodology employed, and on our actual positioning along this trajectory, in accordance with the Net Zero Asset Managers initiative which we joined in 2021.

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Three deployment levers

In order to achieve our goal, we are already working to mobilise 3 SRI levers while systematically incorporating climate issues :

1) shareholder engagement to encourage companies to change their practices and align with climate transition goals
2) exclusion of non-aligned assets
3) integration of the transition criterion in our stock and bond picking strategies.

 

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Focus : high-impact sectors

The investments made by LBP AM and Tocqueville Finance in fossil fuels are governed by two policies seeking shared objectives :

4 objectives :

•  Reduce our exposure to energy assets generating high carbon emissions
•  Optimise the selection of portfolio sectors and companies to reduce climate risks
•   Support portfolio companies in making their own transition
•  Increase investments in companies offering solutions promoting the energy transition

Our portfolio management tools

To be able to steer our efforts to reach our objective, we integrate climate alignment in our analysis and selection tools. In addition to developing sector policies, we do this by acquiring databases on the climate performances of companies, their integration in our sustainability assessment systems, and developing proprietary corporate alignment assessment tools.

Energy transition financing offer

LBP AM and Tocqueville Finance currently manages and sells 3 funds placing the environment at the heart of their investment strategy : LBPAM ISR Actions Environnement, LBPAM ISR Global Climate Change and LBPAM Infrastructure Debt Climate Impact Fund.

Within our Group, the climate transition ambition and net zero alignment trajectory are carried by our entire shareholder base: Caisse des Dépôts, La Poste and La Banque Postale.

Glossary

Paris Agreement
The Paris Climate Agreement is an international treaty on climate change adopted in 2015. The    long-­term goal is to keep the increase in the planet’s average temperature below 2°C relative to   pre-industrial levels, and preferably to limit it to 1.5°C, recognising that this would considerably reduce the impacts of climate change.
EU Taxonomy
European regulation establishing a classification of economic activities generating a positive impact on the environment, along with reporting obligations for European economic players. This transparency should help redirect the economy, including financial investments, into sustainable activities, thus helping achieve European environmental goals.
Net zero emissions
Form of carbon neutrality meaning that greenhouse gas emissions are reduced as closely as possible to zero, with remaining emissions present in the atmosphere being permanently neutralised.
Net zero trajectory
In 2021, the Science-Based Target Initiative published its Net Zero Standard: the first global standard to concretely explain the net zero emissions target on the scale of an individual organisation. It is stipulated that a company has achieved net zero emissions only after attaining long-term decarbonisation of 90% to 95%, combined with permanent neutralisation (sequestration) of residual emissions (the remaining 5% to 10%), along its entire value chain (Scopes 1, 2 and 3).