Franco-German asset manager Oddo BHF AM has become a signatory of the Climate Action 100+ initiative, whose main objective is to put pressure on the 100 companies issuing the highest level of greenhouse gas emissions worldwide to act in order to help achieving the international goals set by the Paris agreement.
The Paris agreement was signed by 195 countries during the COP21 in December 2015, seeking to limit the average temperature rise to 2 degrees Celsius, prevent catastrophic consequences of climate change and fight global warming.
The Climate Action 100+ initiative was launched last December and is set to last five years. A total of 256 institutional investors and asset managers, representing $28trn, have joined it, including its founders Australian Super, CalPERS, HSBC Global AM, Ircantec and Manulife AM.
Among other duties, Oddo BHF AM will require from companies to:
- implement a robust governance framework that will outline the responsibility of their boards and the management of climate change-related risks;
- take action to reduce greenhouse gas emissions throughout the value chain, in accordance with the Paris Agreement’s goals;
- provide a detailed reporting enabling investors to assess the strength of business plans with different climate scenarios to improve their investment decisions.
The Franco-German manager has set a climate strategy at the end of 2017 which consists of measuring its funds’ carbon footprint, fostering discussions with companies on climate change issues and measuring the alignment of its portfolios with long-term climate scenarios.
Nicolas Chaput, CEO and co-CIO of Oddo BHF AM, said joining the Climate Action 100+ initiative confirms the firm’s commitment to ESG, adding that the inclusion of environmental, social and governance criteria, already integrated in the manager’s flagship strategies, will be extended to its corporate bond fund by June 2018.