2022 has once again demonstrated why tackling climate change while limiting social impact, is not only a global sustainability objective, but also key for the economy.
Stewardship (engagement and voting) is a key pillar of Amundi’s responsible investment approach which is part of Crédit Agricole’s societal project. As the largest European asset manager, Amundi is a major shareholder of many companies through the funds and mandates managed on behalf of its clients. We firmly believe in active and constructive dialogue with issuers to positively influence their overall strategy, and push them in an ambitious environmental transition journey. Stewardship is a powerful way to influence company’s understanding and disclosure of environmental and social issues. It is also a way to contribute to strategy changes that will result in real-life outcomes and long term sustainable value creation.
It is our conviction that tackling climate change while managing the social impact of the energy transition is an integral part of sound risk management. It is also important for creating long-term value of our clients’ portfolios.
Caroline Le Meaux, Head of ESG Research, Engagement & Voting of Amundi said :
Amundi believes that every sector and economic player must take immediate action to accelerate their transition, thus contributing to limiting global warming. As part of its 2025 ESG Ambition plan, Amundi is accelerating on its engagement effort and is committed to engage with 1 000 additional companies on their climate strategy: in 2022, we actively engaged with an extra 418 companies in addition of the 464 companies already under engagement since 2021
Climate was a key issue during the 2023 voting season. Amundi supported 88%1 of climate-related shareholder proposals, as it we continue to view shareholder resolutions as an effective mechanism to push for positive change and improved transparency on issuers’ energy transition path.
Focus on the Energy & Utilities sectors
Amundi considers that encouraging the transition of energy companies, and especially oil companies, is part of its fiduciary duty. Unlike coal, for which substitute exist, oil still remains an essential energy source for many sectors. Amundi is convinced that the global target of carbon neutrality requires the transformation of all companies, including energy companies. For this reason, Amundi continues to invest in the energy sector, and actively engages with companies to encourage them to implement credible climate strategies in line with the Paris Agreement scenario. Amundi will also continue its engagement efforts through in-depth and regular dialogue as well as by voting at Annual General Meetings.
Since the beginning of the year, in the Energy and Utilities sectors, Amundi engaged with more than 400 companies1 on climate issues and their carbon reduction strategy. It has implemented a demanding voting policy with regards to board accountability and executive remuneration. More specifically, Amundi opposed the re-election of more than 500 directors (out of 2 278) at 84 companies (out of 313) due to concerns about their climate strategy.
Amundi also voted against executive remuneration-related proposals at 89 oil & gas and utilities companies due to the lack of climate-related performance criteria in their senior management variable compensation schemes. It is our conviction that executive teams should be incentivised to achieve carbon emissions reduction goals.