14 DEC

2016

Corporate, ESG News, Montreal Carbon Pledge, SRI, Team Equity, Topics

Montreal Carbon Pledge – Candriam discloses its carbon footprint

As a pioneer of 20 years in Sustainable and Responsible Investing (SRI) and a signatory to the Montreal Carbon Pledge Initiative, Candriam discloses the carbon footprint of its strategies from the SRI category.

Candriam fully integrates the principles of sustainable and responsible investing in its strategies and is able to evidence the impact on our portfolios to assist our clients’ understanding of their underlying investments. As a signatory to the Montreal Carbon Pledge Initiative in 2015, Candriam has undertaken to regularly publish the carbon footprint of its SRI funds.

Candriam’s evaluation of its portfolios’ carbon footprint takes into account scopes 1 and 2 of the greenhouse gas (GHG) emissions of the different private issuers included in the SRI funds and their benchmark indices. These GHG emissions are standardised with respect to issuer turnover (tons of C02 emitted per million dollars of turnover), thus enabling a consistent comparison among differently sized companies within the respective portfolios.

Applying rigorously the principles of responsible investing through its investment processes, Candriam’s SRI funds have, in aggregate, a carbon footprint of 161 tons C02 / USD million of turnover. This is a CO² footprint which is 35% lower than that of the composite benchmark index.

The table below shows the results for Candriam’s SRI funds and their respective benchmark index per asset class. The differences highlighted in green indicate that the total carbon footprint of the SRI funds comprising this asset class is lower than that of the composite benchmark index for the same asset class.

Whereas the carbon footprint of the composite benchmark index have been stable year on year, our SRI funds’ carbon footprint has decreased from 209.55 to 161 tons C02 / USD million of turnover, resulting in a footprint that is 35% lower than the composite benchmark index.

Total AUM (USD) = 2 693 850 124 USD 
Sources: Candriam calculations based on data output by Trucost, Facset and the MSCI, iBoxx and Citi WBIG index constituents.

This evaluation is one of the environmental indicators on which are based SRI-fund ESG indicators.