Amundi Launches 2025 ESG Strategy, Ties Exec Pay to ESG Goals
Leading European asset manager Amundi announced today the launch of ESG Plan 2025, its new social and climate action plan, including updated objectives for its savings and investment solutions for clients, and for the firm’s engagement policy with companies. As part of the new plan, Amundi will integrate ESG objectives into the remuneration of its senior executives.
The new ESG plan follows the completion of Amundi’s previous three year ESG action plan, which saw accomplishments including achieving 100% of actively managed open-ended funds incorporating ESG criteria, reaching €80 billion euros of responsible investments in passive management (up from €19 billion in 2018), and incorporating companies’ contributions to environmental and societal issues in its engagement efforts.
Amundi’s ESG Plan 2025 is focused on the key objectives of furthering the level of responsible investment in its savings solutions, calling on more companies to define credible net zero 2050 alignment strategies, and ensuring the support of its employees and shareholders in its new ambitions.
The new plan includes a series of goals and initiatives in order to reach its objectives. These include the introduction of a new environmental transition rating for companies in its €400 billion portfolio of actively managed open funds, offering open funds in all asset classes with a Net Zero 2050 investment objective, ensuring that 40% of its passive funds are made up of ESG funds, and engaging with 1,000 additional companies on defining greenhouse gas emissions strategies. Starting in 2022, Amundi will exclude companies from its portfolio that generate over 30% of their activity from unconventional oil and gas production, the firm has also committed to reduce its own emissions by 30% per employee by 2025.
Additionally, Amundi said that the achievement of its ESG objectives will constitute a 20% weight in the KPIs calculation of performance shares for its 200 senior executives, and the company will set ESG targets for all portfolio managers and sales representatives.
According to Amundi, which is a subsidiary of the Crédit Agricole Group, the new plan forms part of the group’s Societal Project, which is focused on the key priorities of climate, social cohesion and agricultural and agri-food transitions.
Valérie Baudson, Chief Executive Officer of Amundi, and Deputy Chief Executive Officer of Crédit Agricole S.A., said:
“Acting in the best interests of our clients and society has always been in Amundi’s DNA. The action plan that we developed in 2018 was based on the principle that an asset manager’s task is not only to invest in the world as it is but also as it should be, with two major themes: climate change and social inequalities. Thanks to the involvement of our teams, our partners’ commitment and above all the trust of our customers and shareholders, we have successfully carried out this plan and have become a benchmark player in responsible investment.
“Today, we commit to going even further to help accelerate the transformation of our society and its economic players. Our new “ESG Plan 2025” is even more demanding and aims to align all of our stakeholders: investors, companies, employees and shareholders. The acceleration of our ESG commitments will be Amundi’s primary growth lever around the world.“