Ostrum Asset Management
Climate Impact & Sustainability Data (2021, 2022)
Reporting Period: 2021
Environmental Metrics
ESG Focus Areas
- Climate Change
Climate Goals & Targets
Environmental Challenges
- Physical risks from climate change (extreme weather events, rising sea levels, biodiversity loss) impacting various sectors, particularly utilities and agribusiness.
- Transition risks from the shift to a low-carbon economy, impacting sectors like oil and gas, and creating stranded assets for financial institutions.
Mitigation Strategies
- Utilizing external data to map climate risks.
- Analyzing causal relationships and adaptation strategies to assess risks accurately.
- Developing proprietary ESG Materiality scores to assess financial implications of non-financial factors.
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (heatwaves, floods, droughts, wildfires)
- Rising sea levels
- Biodiversity loss
Transition Risks
- Regulatory changes (carbon pricing, emission limits)
- Market shifts (demand for fossil fuels)
- Stranded assets
Opportunities
- Investments in renewable energy
- Development of clean technologies
Reporting Period: 2022
Environmental Metrics
ESG Focus Areas
- Climate Change
- Data Security/Cybersecurity
- Governance
- Social Challenges (Talent Hiring, Diversity, Product Liability)
Environmental Achievements
- Majority of Telecom companies committed to CO2 neutrality by 2030
- FTTH network rollout is 85% more energy efficient than copper networks
- Initiatives to collect end-of-life mobile phones for recycling or reconditioning
Social Achievements
- Initiatives to encourage women in scientific scholarships
- Majority of companies offer training and minimal internet access to low-income populations
Governance Achievements
- Issuance of sustainable bonds to finance green projects
- Engagement with 7 European companies on ESG topics (CO2 reduction, risks, cybersecurity, data management, diversity, governance)
Climate Goals & Targets
Medium-term Goals:
- Most Telecom companies aim for CO2 neutrality by 2030 (some by 2025)
Environmental Challenges
- Strong increase in data consumption requiring more energy
- Varying reporting quality on energy consumption
- Lack of information on data storage energy consumption
- Difficulties in fleet electrification due to supply chain issues and low battery autonomy
- Data security and cybersecurity risks varying geographically
- Governance risks such as antitrust behavior and bribery
- Lack of standardized reporting on waste recycling
Mitigation Strategies
- Power Purchase Agreements (PPAs) with renewable energy providers
- Retrofitting data centers
- Initiatives for waste recycling and reconditioning
- Issuing sustainable bonds to finance green projects
- Implementing customer privacy and protection systems to comply with regulations like GDPR
- Engagement with companies to improve ESG practices
Supply Chain Management
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather conditions
Transition Risks
- Increased data consumption leading to higher emissions
Opportunities
- Energy efficiency improvements through network upgrades and renewable energy sources
UN Sustainable Development Goals
- SDG 9 (Industry, innovation and infrastructure)
- SDG 10 (Reduced inequalities)
Sustainable bond proceeds contribute to network optimization, data center construction, IoT, AI, renewable energy integration, and green buildings.