Active asset manager Carmignac has formalised its investment policy to exclude coal and tobacco investments.
It has identified and mitigated risks to client investments arising from governance, environmental and social factors. The company wants to reduce greenhouse gases, and have been a signatory to the United Nations’ principles for responsible investment since 2012.
In future, Carmignac will not invest in any company that derives more than 25% of its revenue from coal mining. These investment restrictions will apply to over 90% of total assets under management.
Carmignac Emergents, Carmignac Portfolio Emergents, Carmignac Portfolio Emerging Patrimoine and Carmignac Portfolio Grande Europe apply an investment policy that excludes tobacco, oil sands and depending on the fund, gambling and animal processing.
These funds have a tighter restriction on coal (excluding companies that derive more than 5% of their revenues from coal) together with an active voting and shareholder engagement policy.
Sandra Crowl, head of ESG Committee and member of the investment committee at Carmignac said in a statement: “The decision to formalise our coal and tobacco policy is a natural reflection of our strong, risk management focus together with our concern over the impact of climate change.
“This focus enables us to better identify and reduce the investment risks. By taking action and joining the commitment of policymakers and other investors worldwide to fight climate change and societal challenges, we are in a stronger position to encourage companies to generate sustainable and long-term value creation.”
Storebrand, the Norwegian financial group that runs a multi-boutique asset management model including Delphi, Skagen, SPP and Storebrand, among its businesses, has signed up to the Tobacco Free Finance Pledge (TFFP) at a United Nations ceremony in New York this week, as our sister publication, Investment Europe, reports.