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ESG

Carmignac, AMP Capital announce coal, tobacco divestment policies

Money manager Carmignac will not invest in any company that makes more than 25% of its revenue from coal mining.

The money manager said Friday that the decision follows a long-held practice to exclude tobacco-producing companies and coal miners from portfolios. These restrictions altogether apply to more than 90% of its €54 billion ($62.8 billion) in total assets under management.

"The decision to formalize our coal and tobacco policy is a natural reflection of our strong, risk management focus together with our concern over the impact of climate change," said Sandra Crowl, head of ESG committee and member of the investment committee at Carmignac, in a news release. "This focus enables us to better identify and reduce the investment risks. By taking action and joining the commitment of policymakers and other investors worldwide to fight climate change and societal challenges, we are in a stronger position to encourage companies to generate sustainable and long-term value creation."

Separately, AMP Capital said it had completed the divestment of A$440 million ($314.5 million) of tobacco manufacturing-related holdings from its portfolios.

The company said Wednesday that the move represented the largest divestment of tobacco securities by a money manager in Australia.

The move follows the introduction of a new ethical framework announced in March 2017. This included the decision to divest from tobacco securities across all equity and fixed-income holdings.

AMP Capital also became a founding signatory of the Tobacco-Free Finance Pledge — a global sustainability framework and initiative of the United Nations Environment Programme Finance Initiative.

The initiative promotes the adoption of tobacco-free finance policies within financial services.

AMP Capital has A$187.7 billion in assets under management.