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Press release

ERAFP commissions the first carbon audit of its investments in listed equities

  • 4 March 2014
Climate and biodiversity
Paris, 4 March 2014 – Reflecting its policy of responsible investment for the long term, and especially its commitment as a member of IIGCC[1], ERAFP has commissioned Trucost to measure the carbon footprint of its equity portfolio of large listed companies.

Using the list of ERAFP’s holdings in listed OECD large caps as at 30 September 2013, the study consolidates the greenhouse gas (GHG) emissions data of each company so as to calculate the portfolio’s carbon intensity and compare it with that of a relevant market index. Trucost used the data disclosed by the companies on direct GHG emissions (level 1) and indirect GHG emissions (level 2 and main suppliers).

The analysis showed that

  • ERAFP’s consolidated equity portfolio had a carbon intensity of 329 metric tons of CO2 equivalent per million euros of sales;
  • The carbon intensity of ERAFP’s portfolio is 19% lower than that of the MSCI All World Index;
  • The portfolio’s relatively better performance against the index partly reflects ERAFP’s bestin-class strategy, consisting of investing only in the best companies in each sector in terms of environmental social and governance criteria.

ERAFP’s decision to limit the analysis to its portfolio of large listed companies was prompted by its reasonable confidence in the completeness and reliability of the data currently disclosed by this type of issuer

In this respect, ERAFP applauds the recent agreement reached by the European Council and the European Parliament to amend European accounting standards so as to require large companies of public interest (including large listed companies and financial institutions) to disclose information on policies, risks and results as regards environmental matters, respect for human rights, anticorruption and bribery issues, and diversity on boards of directors[2].

Similarly, through its IIGCC membership ERAFP publicly affirms its position in favour of a minimum 40% reduction in GHG emissions in Europe by 2030 and its support for an in-depth reform of the EU emission trading scheme[3].

[1] Institutional Investors Group on Climate Change

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