L'etablissement de Retraite Additionnelle de La Fonction Publique, Paris, added a decarbonization filter to a €750 million ($955 million) passive eurozone large-cap equity portfolio managed by Amundi Asset Management, said Alice Blais, ERAFP spokeswoman.
The €16 billion supplemental pension fund for French public service workers already has several environmental, social and governance screens applied to its investments. The plan states on its website that it has a 100% socially responsible investment policy.
The new filter is based on a company's ratio of carbon dioxide emissions to sales and will exclude the 5% most-polluting companies and the top 20% polluting companies in each sector.
“As we had to start from somewhere, we chose to start the decarbonization of our stock portfolio with the mandate currently managed by Amundi,” Ms. Blais said, adding that the money manager already uses such a screen for a portfolio it runs for the 276 billion Swedish kronor ($38.2 billion) Swedish fund AP4, Stockholm. “Our goal is to progressively extend to our other mandates this new filter.”
Amundi also manages €1.9 billion in euro-denominated corporate bonds and €260 million in a multiasset portfolio for ERAFP, Ms. Blais said.