Luxembourg-headquartered Candriam Investors Group said it will sell stakes in companies involved in controversial activities, such as coal mining and tobacco, that are pa of its mainstream strategies, accounting for €113bn (£100bn, $130bn) in assets under management.
The European asset manager said the exclusion would include thermal coal, tobacco, chemical, biological and white phosphorus weapons, and that the measure would be implemented by 31 December 2018.
The firm’s mainstream strategies include active, smart beta, indexed, and alternative strategies, and will add to €30bn that is already invested in pure socially responsible investment strategies.
Candriam chief executive, Naïm Abou-Jaoudé said: “Coal is the most polluting energy source and the first stranded asset in an energy transition pathway, while the harmful effects of tobacco are increasingly exposed”.
“We recognise the important role asset managers play in tackling major global issues such as health and climate,” he said.
The firm said the exclusion of thermal coal was based on an exposure level, both direct and indirect, of maximum 10%, and that it would ban on all companies launching new coal products.
Candriam chief investment officer of investment management, Vincent Hamelink, said extending their divestment strategy to the mainstream funds was a logical next step.
“…Investments in these companies are increasingly incompatible with our long-term risk/return objectives and our sustainability targets such as the Two Degrees Investing Initiative,” he said.
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