Climate Change Data

Carmignac Gestion

Climate Impact & Sustainability Data (2022, 2024, July 2023)

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Climate
  • Empowerment
  • Leadership

Environmental Achievements

  • Launched Carmignac Portfolio Climate Transition fund.
  • Published first TCFD-aligned Climate-related Financial Disclosures report.
  • Onboarded climate risk data from S&P Trucost to incorporate physical and transitional risk metrics.

Social Achievements

  • Launched Carmignac Portfolio Human Xperience fund, focusing on employee and customer satisfaction.
  • Added customer satisfaction data to START using YouGov survey scores.
  • Conducted mandatory Equality, Diversity and Inclusion training for employees.

Governance Achievements

  • Established Carmignac Voting Guidelines.
  • Published ESG Expectations guide.
  • Added a qualitative sustainability objective to the performance evaluation of each investment analyst and portfolio manager.

Climate Goals & Targets

Environmental Challenges

  • Increased scrutiny of ESG definitions and politicisation of the debate.
  • Increased use of coal power in Europe due to the energy crisis.
  • Supply chain disruptions due to geopolitical tension.
Mitigation Strategies
  • Reinforced approach to sustainable investing and stewardship.
  • Developed ESG Outcome calculator.
  • Joined forces with other investors to influence public policy developments.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Supply chain disruptions
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of green technologies

Reporting Standards

Frameworks Used: TCFD, UN PRI, SFDR, EU Taxonomy

Certifications: Label ISR (France), Towards Sustainability (Belgium)

UN Sustainable Development Goals

  • 1
  • 2
  • 3
  • 4
  • 6
  • 7
  • 9
  • 11
  • 12

Uses a rules-based “Outcomes Framework” in line with the UN SDGs to classify equity funds as Article 9 (SFDR).

Sustainable Products & Innovation

  • Carmignac Portfolio Climate Transition
  • Carmignac Portfolio Human Xperience

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Climate Change Mitigation and Adaptation
  • Environmental Sustainability
  • Social Sustainability
  • Good Governance

Environmental Achievements

  • Portfolio climate targets to reduce GHG emissions by 50% in 2030, 70% by 2040, and achieve net zero by 2050.

Social Achievements

  • Applies controversy screening process based on OECD Guidelines and UN Global Compact principles.

Governance Achievements

  • Uses Carmignac's proprietary ESG platform 'START' for ESG analysis of at least 90% of issuers.
  • Active stewardship through ESG-related company engagements.

Climate Goals & Targets

Long-term Goals:
  • Reduce GHG emissions by 70% by 2040
  • Achieve net-zero emissions by 2050
Medium-term Goals:
  • Reduce GHG emissions by 50% by 2030

Environmental Challenges

  • Achieving portfolio climate targets may depend on government incentives, consumer behavior, and technological innovation.
Mitigation Strategies
  • Active stewardship and engagement with companies to improve sustainability policies.

Supply Chain Management

Responsible Procurement
  • Negative screening and exclusions of unsustainable activities

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: OECD Guidelines for Multinational Enterprises, UN Global Compact principles, EU Taxonomy (partially)

Reporting Period: July 2023

Environmental Metrics

ESG Focus Areas

  • Climate Change
  • Environmental Protection
  • Human Rights
  • Labor Standards
  • Anti-Corruption
  • Social Characteristics

Environmental Achievements

  • Minimum 30% of net assets invested in companies deriving >10% revenue or CAPEX from eligible EU Taxonomy activities or investing at least 10% of CAPEX in efficient commodity extraction for climate change mitigation.
  • Minimum 10% of net assets invested in Taxonomy-aligned investments.

Social Achievements

  • Active stewardship with engagements to improve companies' sustainability policies.
  • Monitoring of Principal Adverse Impacts (PAIs) using 14 mandatory and 2 optional indicators.

Governance Achievements

  • Negative screening excluding companies involved in controversial activities (weapons, thermal coal, etc.).
  • ESG integration through Carmignac's proprietary ESG platform 'START'.

Climate Goals & Targets

Environmental Challenges

  • Data limitations and estimations in PAI indicators (36% estimated as of June 2023).
  • Differences between fund's sustainability risk and reference indicator's risk.
Mitigation Strategies
  • Continuous monitoring and controls to ensure attainment of sustainable objectives.
  • Use of multiple data sources (FactSet, corporate filings, S&P Trucost, Refinitiv, MSCI, ISS ESG, UNGC, OECD) and internal ESG experts for data quality checks.

Supply Chain Management

Responsible Procurement
  • Negative screening of unsustainable activities

Climate-Related Risks & Opportunities

Opportunities
  • Investment in companies providing low-carbon solutions and contributing to net-zero emissions.

Reporting Standards

Frameworks Used: EU Taxonomy, SFDR Article 8