Candriam has reported a high of €125bn in assets under management by the end of June 2019, increasing from €65bn in 2014. The multi-specialist asset manager also announced its carbon neutrality with immediate effect as a testament to its commitment and ambition to expand its efforts in sustainability within the asset management space.
Candriam's AuM increased by €10.3bn during the first half of 2019, from €115bn at the end of December 2018 to €125.3bn by 30 June 2019. It witnessed the highest inflows into its Emerging Markets Debt (€900m) and High Yield & Credit Arbitrage (€850m) strategies.
Other top selling strategies included Thematic Equity (€500m) and Corporate Bonds (€300m). A substantial part of Net New Cash also comes from products or mandates with an Environmental, Social and Governance (ESG) approach, confirming Candriam's momentum in responsible investment in recent years. Pure ESG funds and mandates now exceed one third of its total assets.
In the first half of 2019, Candriam continued to extend its leadership in the responsible finance space with the development of new thematic products that aim to have a direct positive impact on society, such as a strategy focused on the fight against cancer and a new strategy centred on companies developing business models to tackle global warming and reduce the impact of climate change. It also donates part of the revenues from its responsible investment fund range to ESG research and education and social impact initiatives.
Reducing global carbon footprint
Five years ago, Candriam defined its proactive strategy to reduce the environmental impact of its operational activities. While the company has doubled in size since then, it has reduced the CO2 emissions of its vehicle fleet, put in place green energy contracts for its buildings and delivered around 50% reduction in the carbon footprint of its paper consumption. With initiatives such as digitalisation (visio/audio conferencing) it aims to raise awareness and even further reduce its weighted carbon footprint.
Offsetting the remaining emissions
From today onwards, in order to achieve its objective of carbon neutrality, carbon emissions generated by Candriam for its business will be offset. This will include scope 1 emissions (fuel, mainly vehicles), scope 2 emissions (energy for buildings) plus business travel as well as supplier related emissions (as part of scope 3).
It has chosen to partner with sustainability financing solutions provider South Pole in order to offset an estimated total of 9,400 tonnes of annual CO2 emissions. South Pole will invest in carbon offsetting projects such as reforestation, renewable energy and energy efficiency schemes on Candriam's behalf.