These funds use CDP scoring methodology to select companies committed to limiting their impact on climate change across a variety of sectors. Having initially partnered with CDP in 2018 to launch the CPR Invest – Climate Action International Equity Fund, CPR AM is now working with CDP on a range of solutions across all mainstream asset classes, aimed at clients wishing to manage the climate-related risks in their investment portfolios and help finance the environmental transition.
In their respective investment universes, CPR Invest – Climate Action Euro and CPR Invest – Climate Bonds Euro use the decarbonisation methodology implemented in 2018 by the CPR Invest – Climate Action fund. They also follow on from two funds - a diversified fund and an international equity fund - launched in 2020 within the LCL banking network. CPR AM is therefore offering a range of open-ended funds with the same climate-related investment philosophy for the main asset classes: equities, bonds and asset allocation.
The methodology is primarily based on the decision not to exclude any sector a priori, given that every effort counts. The aim is to finance all parties that contribute to combatting global warming, including the main carbon emitters which, by rethinking their model, can significantly influence the rise in global temperatures to limit it.
It also incorporates CDP’s scoring methodology which rates companies on a scale of A to D, according to their transparency and action to tackle climate change. CPR AM’s climate funds only hold A and B-rated companies which are the most advanced companies in this area. They also accept companies scoring C with CDP, if the company has a scientifically approved emissions reduction target complying with the Paris Agreement (a science-based target). CDP selection therefore allows management teams to have an investment universe that brings together the most climate-friendly companies.
In addition to the CDP scores, ESG criteria and controversy indicators are taken into account in order to build portfolios that meet the triple objective of financial outperformance, rigorous control of extra-financial risks and decarbonisation.
CPR Invest – Climate Action Euro is an equity fund investing in all sectors in the Eurozone. The definition of its eligible universe (303 securities) excludes 36% of the initial universe (MSCI EMU Index companies scored by CDP, i.e. 471 securities). The fund is managed by Alexandre Blein, a member of CPR AM’s Thematic Equities team, who has also managed the first Climate Action fund since its launch in 2018.
CPR Invest – Climate Bonds Euro is a Euro-denominated Investment Grade bond fund active across all sectors, OECD countries, maturities and seniorities, aimed at financing companies that stand out for their decarbonisation efforts across the credit spectrum, beyond just the green bond market. The definition of its eligible universe (441 issuers) excludes 35% of the initial universe (925 issuers). The fund also invests in the BB segment as a source of diversification and additional return without exceeding risk limits or sacrificing environmental performance. It is managed by Credit Manager Antoine Petit and Head of Treasury and Credit Solutions Julien Levy.
CPR AM will make fund impact reports available on a monthly and annual basis, which will allow investors to track the evolution of several key indicators (such as the portfolio’s carbon footprint and intensity) and thus tangibly identify the contribution of their investments to combatting climate change.
Both funds are available within CPR Invest, a SICAV [investment company with variable capital] governed by Luxembourg law, and are currently registered in France, Belgium, Switzerland, Germany, Austria, Spain, Finland, Italy, the Netherlands, the Czech Republic, the UK and Sweden.
Gilles Cutaya, Deputy CEO of CPR AM, says: "We have made the fight against climate change one of our strategic priorities, thanks to our special partnership with CDP and to the mobilisation of all our management and research teams. The launch of these two new offerings is a continuation of CPR AM’s work in 2020 on the temperature pathway and the carbon offsetting of our funds. These funds are a direct response to investors’ demands to decarbonise their portfolios and consolidate the range of solutions that CPR AM is able to offer them across all main asset classes. CPR AM’s climate range already has more than €1 billion in AUM and we continue to reinforce our ambition to become the leading climate partner for investors for years to come.”
Laurent Babikian, Director Capital Markets at CDP Europe, says: "We are delighted that the hugely successful CPR Invest – Climate Action fund is expanding to offer further options for investment in top climate performers. Investors must urgently take more real and impactful action to align their portfolios with a 1.5 °C world. These investments - based on the best CDP scores and science-based targets – bring to the market more credible investment solutions to the climate crisis based on the best available data. They will help finance the transition to a net-zero emissions economy."
