The entry in force in 2017 of the “French law on Energy Transition and Green Growth.” and its article 173, generated significant changes in the reporting’s habits of French investors. According to a recent study from the research centre Novethic, many investors seized successfully this new legal opportunity and integrated climate and ESG dimensions in their reporting, sometimes also in their strategy.
In particular, the study specifies that, on a total panel of 100 big institutional French investors, accounting for 3160 billion euros assets, 69 investors have published in 2017 information related to article 173. The level of details and of strategic reflexions differs however a lot in the different reports.
This is an encouraging result, however, the required improvements for 2018 are also highlighted, specifically on climate aspects. Generally speaking, Novethic estimates that the targets set and the defined strategies are still at an early stage and could be more ambitious. The current limits of the tools available is also highlighted.
Engaged Tracking developed several services to help investors to face the challenges coming in 2018 and to support them for their reporting and in the definition of strategies. Engaged Tracking products can evaluate the exposure to climate risk of investment portfolios, according to several criteria. The results are easily assimilable for investors and deliver the required basis to define ambitious low-carbon strategies. They provide information to reach the article 173 requirements and are aligned with the global TCFD recommendations.
Assess climate impact
- Carbon footprint assessment of direct and indirect emissions
- Fossil fuel reserves estimation
Focus on the impact of sectors and stocks
- Sectoral carbon footprint assessment
- Stock selection and sector allocation assessment
- Focus on the biggest stocks emissions
³ - 173 nuances de reporting, Focus sur les investisseurs institutionnels français, Novethic, November 2017
4 - www.fsb-tcfd.org
Integration of the « Scenario analysis » approach
- Coverage of several temperature trajectories, of portfolios’ resilience to these scenarios and of the alignment with a 2 C degree scenario
- Estimation of the sensitivity to global carbon pricing
« Green and Brown » revenues
- Identification of activities responsible for high carbon risk and of activities with a potential for a low-carbon transition (In development, coming soon)
Advisory and support for results interpretation
- Support for our clients to assimilate and interpret the results
Low-carbon strategy definition
- Definition of reduction targets
- Definition of low-carbon investment products, based on the ET Low Carbon methodology, which allows bespoke options
Thanks to their diversified approaches, our services help our clients to seize the opportunities related to climate risk. They are applicable on several asset classes and can adapt to all kind of investment portfolios.
Demonstrations of our tools are available. If you are interested in knowing more on our services, please get in touch with our expert team.
Téléphone: +44 (0)207 183 3221