For a sustainable economy
CNP Assurances’s primary financial responsibility is to secure the commitments made to policyholders and guarantee a steady, optimized performance year after year.
In line with the belief that including socially responsible investment criteria in the investment selection process optimizes the yield-to-risk ratio over the long term, ESG screens have been applied to the majority of CNP Assurances’s assets and those of its French subsidiaries (80% at end-2017) over the last few years. CNP Assurances wants to use its investments as a driver for positive change in the economy.
Energy and environmental transition
Ecological and energy transition
CNP Assurances obtained a share in private equity funds in the eco-energy/eco-industry/cleantech sector amounting to €34 million at the end of 2016. Direct and indirect investments in renewable energy infrastructures, sustainable mobility and water and waste treatment represented a total of €651 million at the end of 2016. In addition to these funds, €902 million was invested directly in bonds linked to specific environmental projects (green bonds).
At the end of 2015, together with the management company Meridiam, CNP Assurances launched an infrastructure fund “Meridiam Transition” in order to finance innovative development projects involving energy transition, local services such as heat networks and waste-to-energy processing, electricity and gas networks and innovative renewable energies: €100 million was invested at the end of 2015 followed by a further €49 million in 2016.
Thanks to developments within the framework of its low carbon strategy, CNP Assurances reached its target of tripling outstanding amounts for the benefit of TEE between 2014 and 2017 with these amounts standing at €1.7 million on 31/12/2016.
CNP Assurances received a special mention from the jury at the awards for first prize in the international competition for the best investors climate report in October 2016.
Withdrawal from the coal sector
CNP Assurances has transferred bonds in coal mining and coal-based energy producing companies worth around €300 million since 2015. At the end of 2015, it no longer held any direct position in the listed shares and bonds of companies, for whom more than 25% of their turnover is derived from thermal coal.
Financial portfolio's carbon footprint
After committing to the Montréal Carbon Pledge in May 2015, CNP Assurances measures and publishes its financial portfolio's carbon footprint. As a first step, this measurement concerns
the portfolio of listed equities held directly.
At 31 December 2016, this footprint was estimated to be 0.405 teq CO2/thousand Euros invested. CNP Assurances has set the objective of a 20 % reduction in the level reached on 31 December 2014 by 2020 (slightly faster rate than the commitments of the European Union under the Paris agreement) in particular by engaging in talks with the companies in which it owns shares. This indicator, which is useful in terms of coordinating the decarbonation of the portfolio, remains imperfect as it does not necessarily put the company’s positive actions to promote energy transition in a positive light, CNP Assurances supports the development of methodologies on the carbon and TEE impact of companies, in particular those related to avoided emissions.
NB: This is an estimate of greenhouse gas emissions for scope 1 and 2 portfolio companies at the end of 2015 (last published figures), without reprocessing duplicates, reported in the portfolio book value. These estimates are volatile and depend notably on the data collection methods and scope within firms and changes in reference emission factors. Therefore, even though the results are extremely encouraging at the end of 2016, CNP Assurances remains vigilant and is still pursuing these actions.