Paris-based asset manager La Financière de l’Echiquier (LFDE) has announced it is now measuring the carbon footprint of almost all funds it runs, representing 80% of the firm’s assets under management.
The French law on energy transition requires from institutional investors to unveil their investments’ carbon footprint while asset managers are required to release information on the integration of ESG criteria and climate-related risks in all investments of funds with AUM over €500m as of end-2016.
If only four funds of LFDE (Echiquier Agressor, Echiquier ARTY, Echiquier Major et Echiquier Patrimoine) entered into the scope of the law, the manager has taken the opportunity of going further in order to become familiar with the management of climate-related risks.
Sonia Fasolo, head of SRI at LFDE and portfolio manager of Echiquier ISR, said the first carbon footprint measures were encouraging as LFDE’s growth equity strategies have a much smaller carbon footprint than their benchmarks.
“For instance, an investment of €1m in Echiquier Major carries six times less carbon than its benchmark MSCI Europe,” she argued.
Didier Le Menestrel, chairman and CEO of LFDE, said the expansion of the carbon footprint measure in the manager’s fund range is a new step aiming to reinforce LFDE’s engagements towards SRI management.
LFDE has partnered with independent research firm Trucost to measure its investments’ climate-related risks.
The carbon footprint of LFDE’s funds will be available on the manager’s website by 30 April 2017.
LFDE had €8bn of AUM as of end-2016.