Etablissement de Retraite Additionnelle de la Fonction Publique, Paris, is searching for one or more consultants in climate change risk to analyze opportunities and risks across its investments, a spokeswoman said.
The €25 billion ($27.4 billion) pension fund has split its search into two separate RFPs. The first RFP is for one or more consultants to evaluate climate change-related risks and opportunities across almost €23 billion of assets, covering public equities, corporate bonds, sovereign bonds and convertible bonds.
The pension fund has been working with incumbent Trucost since 2013 to estimate the carbon footprint of its portfolio. It began with public equities, but for its 2015 reporting asked the firm to also include corporate and sovereign bonds into its analysis. Trucost can rebid.
The second RFP is for a consultant to advise on the development of measures to analyze real estate, infrastructure and private equity exposures for climate-change risks, and then to measure risks and opportunities. This relates to about €1.5 billion of assets, the spokeswoman said.
She said in an e-mail that pension fund executives wanted to expand both the scope and depth of the analysis. They were also encouraged to do so as part of France's new energy transition law, requiring institutional investors to analyze climate change-related risks in portfolios.
The pension fund has launched the search to select providers and develop a relationship on a longer-term basis. “We aim at covering our entire portfolio, including non-listed assets,” and the pension fund expects not only to calculate the carbon footprint of its portfolio, “but also to develop wider tools and indicators that will help us better assess the exposure and the resilience of our investments with regards to climate change-related risks,” the spokeswoman wrote.
She said executives might choose one or several candidates, or one for both searches.
Contracts will run for three years, and proposals for both searches are due Nov. 30. The RFPs are available on procurement website achatpublic.