Ircantec Awards €1.6 Billion Responsible Investment Mandates to Amundi and BNP Paribas Asset Management

French public pension fund Ircantec has awarded nearly €1.6 billion in responsible investment mandates to Amundi and BNP Paribas Asset Management. Amundi will manage close to €800 million in global equities and €400 million in European equities, while BNP Paribas Asset Management will manage a further €400 million in European equities. All three mandates will run for seven years.

 

The portfolios will track a customised MSCI SRI index requiring carbon footprints to remain at least 50% below their benchmarks and to decarbonise by 7% each year. To avoid achieving those reductions simply by removing high-emitting sectors, the index must retain at least the same level of exposure to high-impact sectors as the benchmark.

 

Read more: Germany Needs €6 Trillion of Climate Investment to Reach Net Zero by 2045

 

The mandates also incorporate Ircantec’s SRI Charter, including exclusions linked to thermal coal, oil and gas activities. Managers will also be expected to engage companies heavily involved in financing coal and unconventional energy and encourage them to develop credible plans to phase out coal and non-conventional energy by 2030.

 

Ircantec said the selected managers will be required to follow its voting policy and maintain regular dialogue with portfolio companies on ESG issues. The appointments form part of a broader responsible investment programme that also includes planned mandates for two €700 million green bond funds and one €300 million social bond fund.