Lyxor Asset Management has announced today it will be divesting from companies exposed to thermal coal as part of its new climate policy.
The French group will be withdrawing its investments from those companies that generate over 10% of their turnover from activities related to thermal coal mining as well as from energy firms for which over 30% of the electricity production is derived from coal.
The company said it has already divested €350m to date and added: "Lyxor is in line with the Société Générale Group's strategy of total exit from the coal sector by 2030 for companies with assets in the EU or the OECD, and by 2040 for the rest of the world."
I am convinced that by focusing on the four pillars of constructive dialogue with issuers, innovative investment solution design, exclusionary policies and portfolios’ climate indicators, we are equipping ourselves to put investment at the service of the transition to a low-carbon world.”
Lyxor has also announced it is implementing an engagement policy comprising a climate-change voting policy and entering into numerous partnerships for the fight against climate change.
The climate change voting policy means objections may be made at general meetings to votes on a number of resolutions in the event of environmental controversies (discharge of the board of directors, renewal of the chairman of the audit committee, etc.).
This policy also implies that Lyxor will engage in proactive dialogue in advance of general meetings and throughout the year to encourage the companies we invest in to adopt the best environmental practices.
Lyxor has also formed several academic partnerships to facilitate research in sustainable investment and finance, such as the Finance Durable et Investissement Responsable research chair and the Lyxor Dauphine Research Academy.
As part of the manager's climate policy, the firm has also developed a proprietary methodology to reference simple and easily measurable indicators on both the risks and opportunities that are associated with climate change in portfolios.
These indicators relate first to the portfolios' carbon footprint (measurement of greenhouse gas emissions) as well as to the share of fossil reserves that an investor would be responsible for and the potential emissions of these known fuel reserves.
Then, a second series of indicators classifies issuers according to their efforts in terms of energy initiatives (use of cleaner energy sources, management of energy consumption, etc.) and evaluates the share of their profits derived from environmental solutions contributing to the United Nations Sustainable Development Goals.
As of 15 September 2019, Lyxor has performed an ESG & Climate rating on 325 funds, based on 150 criteria.
Florent Deixonne, head of SRI at Lyxor Asset Management said: "With its Climate Policy, Lyxor has created an ambitious framework to support the climate transition.
"I am convinced that by focusing on the four pillars of constructive dialogue with issuers, innovative investment solution design, exclusionary policies and portfolios' climate indicators, we are equipping ourselves to put investment at the service of the transition to a low-carbon world."