81% of CNP Assurances financial assets managed according to ESG criteria
CNP Assurances is an insurance company. As such, it does not manage assets for others and entrusts the management of its own assets to specialists. The responsible investor approach is defined and led by CNP Assurances, drawing on the extra-financial expertise of the asset management companies. This commitment was strengthened in 2011 when CNP Assurances signed on to the Principles for Responsible Investment (
PRI), as well as in 2015 when it signed on to the Montréal Carbon Pledge.
CNP Assurances' responsible investing is reflected by progressively taking into account environmental, social and governance (ESG) criteria for the whole portfolio over the different unit-linked investments:
■ Listed equities:
Best-in-class management. Quarterly monitoring since 2006 with Natixis AM’s extra-financial analysts and since 2009 with LBPAM’s specialists. Whenever a problem of non-compliance with ESG criteria is detected, constructive dialogue is engaged with the company concerned, either through our asset managers or during the lead-up to the Annual Meeting. When dialogue fails to produce results, other actions can be taken. These might include suspending purchases of the company’s securities or even selling the existing portfolio.
Responsible investing in listed unit-linked investments supports ecological and energy transition, in particular via the development since 2014 by our management company SRI analysts of a risk and carbon opportunity approach. As of 2008, CNP Assurances excluded manufacturers of cluster bombs and antipersonnel mines from its listed equities. Since 2015, it has excluded all coal mining
and coal-based energy producing companies whose turnover is more than 15% derived from thermal coal.
■ Government bonds and equivalents:
Exclusion of tax havens and non-democratic countries with a low freedom rating according to the Freedom House index, or which are deemed corrupt by Transparency International.
■ Corporate bonds:
Quarterly ESG portfolio scores, exclusion or limitation of the investment world based on the Global Compact’s principles. In 2008, CNP Assurances excluded from its bond investment world cluster bomb and antipersonnel mine manufacturers. Since 2015, it has also excluded all coal mining and coal-based energy producing companies whose turnover is more than 15% derived from thermal coal.
■ Mutual funds:
The procedure is based on the selection of management companies (taking their ESG commitment into account) and the definition of general investment principles: players who speculate on agricultural raw materials and manufacturers of cluster bomb and anti-personnel mines are excluded. Furthermore, dedicated mutual funds that do not comply with the Global Compact principles and the carbon footprint issue defined in accordance with the procedure on bonds have also been excluded since 2015.
The issue of sensitive countries is also monitored: an investigation into tax havens and embargoes was conducted in 2015. Findings from this investigation are included in the due diligence questionnaire, which prompted the exclusion of new dedicated mutual funds.
Furthermore, CNP Assurances invested €2.8 billion in SRI mutual funds, or 10% of the amounts outstanding for all non-dedicated mutual funds held at end-2016.
■ In addition, SRI documentation is provided in unit-linked policies
. UThey represent an outstanding amount of €592 million, up 9% compared with 2015.
■ The Caixa Seguradora Group
makes industry exclusions based on its investments in government and corporate bonds, as well as exclusions in shares. CNP Seguros de Vida prioritises between investments with equal risks and returns, selecting the one with the better social and/or environmental profile. At the end of 2016, 16% of assets were dedicated to supporting SMEs and social infrastructures. In 2015, CNP UniCredit Vita implemented exclusion rules defined by CNP Assurances for sensitive securities and countries in its Euro portfolio, or 46 % of its financial assets at the end of 2016 in line with MFPrévoyance.