12 Oct 2020

Our commitment to climate 

climate

Our Climate Policy

At Lyxor Asset Management, climate, and mitigating our impact on the world around us, is at the heart of our responsible investing strategy.

Our Climate Policy has four main pillars:

1.

Designing innovative solutions for climate transition

As a true innovator, Lyxor will continue to create standout pro-climate investments. The launch of our unique ecosystem of Climate ETFs built to help limit global warming to 1.5°C is just the latest example. Prior to that, we were the first provider to launch ETFs dedicated to four UN Sustainable Development Goals, with our World Water and New Energy ETFs specifically focusing on climate-related topics. Our green bond funds, the first of their kind anywhere in the world, also allow investors to ensure their investments only finance climate-friendly projects. Our policy commits us to continue helping investors to decarbonise their portfolios. 

2.

Acting as a committed and responsible shareholder

We are committed to the UN-backed Principles for Responsible Investment (PRI). The PRI is an investor initiative in partnership with UNEP Finance Initiative and UN Global Compact, designed to support responsible investors, to create sustainable markets which contribute to a more prosperous world for all. Being a signatory to the PRI comes with great aspirations and a great responsibility to act on sustainability issues, notably climate. Lyxor therefore implemented an engagement policy comprising two complementary components: a climate-change voting policy allowing for objections at general meetings, to vote on a number of resolutions in the event of environmental controversies, and an increased focus on partnerships with financial and non-financial actors involved in the fight against climate change.

3.

Assessing the climate-related risk of portfolios

Lyxor believes it is vital to assess the climate risks of all of its funds under management, beyond the overall ESG risks, because the climate issue dwarfs all others in its urgency. As such, we have developed a proprietary methodology to reference simple and easily measurable indicators on both the risks and opportunities associated with climate change in our portfolios. These indicators include, for example, portfolio carbon footprints, share of fossil reserves investors would be responsible for, and use of cleaner energy sources. Monthly ESG reports detailing these metrics can be found on our website for our full range of equity and fixed income ETFs. It is our aim to be as transparent as possible, so we will be publishing more information whenever possible – enabling investors to make the kind of confident, informed investment decisions which could help safeguard our planet’s future.

The main objective of our Climate Policy is to provide a framework for taking climate issues into account in our everyday business as an asset manager and give our investors the confidence they need to invest with us. We recognise we have a key role to play in contributing to the global ambition of keeping global warming below two degrees by 2100, and we’re doing everything we can to help finance the transition to a low-carbon world.

4.

Divesting from coal where possible

Coal divestment is a key factor in the transition to a greener future. Within its active funds, Lyxor has withdrawn from companies most exposed to the sector by excluding those which generate more than 10% of their turnover from thermal coal mining activities, and energy sector companies for which over 30% of the electricity production is derived from coal.

In fact, fighting against climate change and contributing to the emergence of a low-carbon economy is at the heart of the Societe Generale group’s mission as a whole. As a group, we have ambitious goals for contributing to the energy transition, with €120 billion of new financing between 2019 and 2023. We are also pulling out of the coal industry: in 2030 for European Union and OECD countries, and in 2040 in the rest of the world.

The main objective of our Climate Policy is to provide a framework for taking climate issues into account in our everyday business as an asset manager and give our investors the confidence they need to invest with us. We recognise we have a key role to play in contributing to the global ambition of keeping global warming below two degrees by 2100, and we’re doing everything we can to help finance the transition to a low-carbon world.

Our Climate Policy

Read our climate policy in more detail

A 60 second guide to our policy