Ircantec, the complementary regime for contractual staff in the French public sector, and Amundi’s thematic center CPR AM have partnered to develop new environmental, social and governance (ESG) filters that will help to enhance portfolio risk management.
Since 2016, Ircantec and CPR AM have been developing a rigorous ESG approach for developed market equities and investment grade European corporate bonds.
The approach relies on Amundi’s extra-financial analysis for equities and bonds that gives companies ESG rankings and excludes issuers deemed to contain certain unacceptable risks that traditional ESG analysis would overlook.
It emphasises ESG factors deemed ‘weak signals’ by traditional ESG analysis, including energy consumption, water management, labour relations, human rights, board structure, audit and compliance, shareholder rights.
Jean-Pierre Costes, Chairman of Ircantec, said: “Responsible investing is in our DNA and taking into account extra-financial criteria is instrumental in our decision to award investment mandates. The work we have done with CPR AM demonstrates our commitment to finding innovative investment solutions, and will add to the tools we use to invest over the long-term.”
Additionally, CPR AM will roll out this ESG methodology for its different asset classes and thematic investments over the coming months.