07.12.2018

CPR AM licenses five funds with new climate rating, Climetrics

  • First asset manager to license Climetrics
  • Ratings are based on a fund’s holdings, investment policy, and governance
  • Demonstrates CPR AM’s commitment to socially responsible investment strategies and the promotion of sustainable growth

London, 5 December 2018 - CPR Asset Management, part of Europe’s largest asset manager Amundi, has become the first asset manager to license climate rating Climetrics to market its funds.    
 
Developed by international non-profit and climate specialist, CDP and ISS-climate, Climetrics gives investors a holistic assessment of a fund’s climate-related risks and opportunities. The independent rating allows investors to assess the long-term impact of their investments and to ensure they are well-positioned in the transition to a low-carbon economy.
 
CPR AM uses the Climetrics rating to differentiate its offering in the fund market and demonstrate its commitment as a responsible investor. Using data from CDP, which has the most comprehensive collection of self-reported environmental data in the world, holdings are scored on their current carbon emissions, exposure to fossil fuels, use of clean technology, and their forward-looking strategies for managing long-term climate and deforestation risks.
 
Gilles Cutaya, Chief Marketing and Communication Officer at CPR AM said: “Climate change is a pressing environmental issue that we can no longer ignore. As an asset manager rooted in responsible investment, our decision to use the Climetrics license for our fund’s rating demonstrates our commitment to promoting long-term, responsible investments for our clients.”
 
Funds are based on a five-part rating scale and the Climetrics methodology consists of three parts: a fund's holdings, its investment policy, and governance. As part of the rating, Climetrics assesses:

  • carbon efficiency;
  • climate-related risks and opportunities;
  • governance and investment policy; and
  • public action on climate change.

 Climetrics awards the best, 5-leaf, rating only to funds managed by asset managers that take public action to integrate climate change into their governance and investment processes. 

Nico Fettes, Head of Climetrics at CDP said: "We are delighted that CPR AM will start using Climetrics to give investors more clarity and confidence when looking for funds aligned with the low carbon transition. The fund industry can be a key lever to urgently move the capital needed to mitigate climate change, supporting the EU Commission’s goals for a climate-neutral economy by 2050[1]. Investors of all types need this information about the climate-related risks and opportunities in their investments. CPR AM's move to license Climetrics - the first asset manager to do so - will help distinguish well-positioned funds."

The integration of Climetrics further distinguishes CPR AM’s ESG offering. In recent years responsible investment has grown in popularity across Europe, driven by the European Commission’s new Action Plan for Sustainable Finance. The EU has stated that €180 billion in additional sustainable investments are needed to achieve its emissions targets[2].

 

Investments in 5-leaf Climetrics funds may be best-placed to encourage the fight against climate change.

Footnotes

 

  1. ^ [1] Press Release – European Commission – November, 28th 2018 - The Commission calls for a climate neutral Europe by 2050
  2. ^ [2] Press Release – European Commission –March, 8th 2018 - Sustainable finance: Commission's Action Plan for a greener and cleaner economy