Investing in Climate: Choosing Fund Managers Wisely
In 2022, Responsible Finance Week took place from September 29 to October 7. This is the highlight of the French place on the theme of responsible investment(1). Its objective is to raise awareness and mobilize all stakeholders in favour of making finance contribute to building a more sustainable future, whatever the forms: crowdfunding aimed at a societal impact, Solidarity Finance, Socially Responsible Investment (SRI)(2), etc. In this article, we focus on the impact that individual investors can have through their management choices, and primarily, when choosing their asset manager.
Climate change: what levers, at the individual level?
The hot summer we had this year has made us more aware of the consequences that climate change will have on our lives. The latest report of the IPCC (Inter-governmental Panel on Climate Change) published on April 4, gives us three years to accelerate our climate policies in order to halve our greenhouse gas emissions by 2030.
States, individuals or companies: we are all concerned by this call. As individuals, we have the opportunity to make choices regarding our lives, our consumption, our habits in terms of equipment, transport or heating… And these choices can have a significant impact on our carbon footprint. It is estimated that, through their choices alone, each French can contribute for a quarter to the reduction of emissions goal which is necessary to align collectively with a scenario of temperature increase of less than 1.5° by 2100(3). Among existing levers of action, there is little mention of the management of one’s savings…
Acting for the climate through my investment choices
According to an Oxfam report(4), the CAC 40 has a global warming temperature of 3.5°, 2°too high. An edifying figure, even if not all the projection methodologies agree.
There are a number of options for investors interested in participating in the transition to a more sustainable world, including choosing management:
excluding companies in the most carbon-intensive sectors such as coal; Societe Generale Private Banking has implemented this criterion for all of its management solutions;
investing in companies that, although still highly emitting, are working to move their business model quickly, transparently and by measuring the efforts made;
investing in companies aiming for a beneficial impact on the climate, developing solutions to fight or adapt to climate change; for example, climate impact funds.
The investor will also be able to check with his manager whether he has made climate commitments.
The Net Zero Asset Managers Alliance: asset managers committed to the climate
Created in 2020, the Net Zero Asset Managers Initiative (NZAM) alliance brings together asset managers from around the world, committed to achieving net zero greenhouse gas emissions by 2050 in line with global efforts to limit global warming to 1.5°. It has 273 signatories and represents over $61 trillion in assets under management(5).
The first private bank to offer management under mandate labeled ISR (2021) and committed for years in favour of responsible investment, Societe Generale Private Banking has just joined the NZAM alliance, through the two management companies of Societe Generale, SG 29 Haussmann(6) (in France) and Societe Generale Private Wealth Management(7) (in Europe). The fact of belonging to such a group can also guide investors in the search for sustainable and responsible solutions in the selection of their managers.
We invite you to contact your Private Banker to learn more about our responsible management solutions.
- - - - - - - - - - -
(1) Responsible finance refers to the various solutions the purpose of which is both the search for financial profitability and an environmental, social or societal impact.
(2) A Socially Responsible Investment is an investment that incorporates ESG criteria, while aiming for economic performance.
(3) Carbon4 report, “Doing its part”, 2019
(4) Source: Oxfam / Carbon4 Finance report – Climate: CAC degrees too high, March 2021
(5) As of May 31, 2022, source: www.netzeroassetmanagers.org
(6) Approved by the Autorité des Marchés Financiers in 2006, SG 29 Haussmann, a subsidiary of the Societe Generale group, is the portfolio management company dedicated to managing the assets of Societe Generale Private Banking France’s clients.
(7) SGPWM is a management company authorised in Luxembourg by the Commission de Surveillance du Secteur Financier (“CSSF”) with its head office located at 283 Route d’Arlon, L-1150 Luxembourg, and subject to Chapter 15 of the Luxembourg law of 17 December 2010 on undertakings for collective investment as amended.
Would you like to discuss this subject further with us?
GENERAL WARNING:
Societe Generale Private Banking is the business line of the Societe Generale Group operating through its headquarters within Societe Generale S.A. and through departments, branches or subsidiaries, located in the territories mentioned below, acting under the brand name "Societe Generale Private Banking" and distributing the present document.
This document is an advertisement and has no contractual value. Its content is not intended to provide an investment service, nor does it constitute investment advice or a personalized recommendation on a financial product, nor insurance advice or a personalized recommendation, nor a solicitation of any kind, nor legal, accounting or tax advice from any entity under the responsibility of Société Générale Private Banking.
The information contained herein is provided for information purposes only, is subject to change without notice, and is intended to provide information that may be useful in making a decision. The information on past performance that may be reproduced does not guarantee future performance.
The private bankers of Société Générale Private Banking entities are available to provide potential investors with further information on the variations of the themes presented in this document within the Société Générale Private Banking entity concerned.
This document is confidential, intended exclusively for the person consulting it, and may not be communicated or brought to the attention of third parties, nor may it be reproduced in whole or in part, without the prior written consent of the Société Générale Private Banking entity concerned.
No Société Générale Private Banking entity can be held responsible for any decision made by an investor based solely on the information contained in this document.
Societe Generale Group maintains an effective administrative organization that takes all necessary measures to identify, control and manage conflicts of interest. To this end, Societe Generale Private Banking entities have put in place a conflict of interest management policy to manage and prevent conflicts of interest. For more details, Société Générale Private Banking clients can refer to the Conflict of Interest Policy available on request from their private banker.
S ociétéGénéralePrivate Banking has also implementedapolicyof d heprocessing ofclaimsmade pa availableonrequestfrom their private banker or on the Société Générale Private Banking website.
SPECIFIC WARNINGS BY JURISDICTION
France: Unless expressly stated otherwise, this document is published and distributed by Société Générale, a French bank authorized and supervised by the Autorité de Contrôle Prudentiel et de Résolution, located at 4, place de Budapest, CS 92459, 75436 Paris Cedex 09, under the prudential supervision of the European Central Bank ("ECB") and registered with the ORIAS as an insurance intermediary under the number 07 022 493 orias.fr Societe Generale is a French société anonyme with a capital of 1 046 405 540 euros as of February 1, 2022, whose registered office is located at 29, boulevard Haussmann, 75009 Paris, and whose unique identification number is 552 120 222 R.C.S. Paris. Further details are available on request or at www.privatebanking.societegenerale.com.
Luxembourg: This document is distributed in Luxembourg by Société Générale Luxembourg, a public limited company (société anonyme) registered with the Luxembourg Trade and Companies Registry under number B 6061 and a credit institution authorized and regulated by the Luxembourg Financial Sector Supervisory Commission ("CSSF"), under the prudential supervision of the European Central Bank ("ECB"), and whose registered office is located at 11, avenue Emile Reuter - L 2420 Luxembourg. Further details are available on request or at www.societegenerale.lu. No investment decision of any kind should be made on the basis of this document alone. Société Générale Luxembourg accepts no responsibility for the accuracy or otherwise of the information contained in this document. Societe Generale Luxembourg accepts no responsibility for any actions taken by the recipient of this document solely on the basis of this document, and Societe Generale Luxembourg does not represent itself as providing any advice, in particular with respect to investment services. The opinions, views and forecasts expressed in this document (including its annexes) reflect the personal opinions of the author(s) and do not reflect the opinions of any other person or of Société Générale Luxembourg, unless otherwise indicated. This document has been prepared by Société Générale. The CSSF has not carried out any analysis, verification or control on the content of this document.
Monaco: This document is distributed in Monaco by Société Générale Private Banking (Monaco) S.A.M., located at 11 avenue de Grande Bretagne, 98000 Monaco, Principality of Monaco, regulated by the Autorité de Contrôle Prudentiel et de Résolution and the Commission de Contrôle des Activités Financières. Financial products marketed in Monaco may be reserved for qualified investors in accordance with the provisions of Law n° 1.339 of 07/09/2007 and Sovereign Order n° 1. 285 of 10/09/2007. Further details are available on request or at www.privatebanking.societegenerale.com.
Switzerland: This document is distributed in Switzerland by SOCIETE GENERALE Private Banking (Suisse) SA ("SGPBS"), headquartered at rue du Rhône 8, CH-1204 Geneva, Switzerland. SGPBS is a bank authorized by the Swiss Financial Market Supervisory Authority ("FINMA"). Collective investments and structured products may only be offered in accordance with the Swiss Federal Act on Collective Investment Schemes (Collective Investment Schemes Act, CISA) of June 23, 2006, and the Guidelines of the Swiss Bankers Association (SBA) on Information for Investors in Structured Products. Further details are available on request from SGPBS or at www.privatebanking.societegenerale.com.
This document is not distributed by the entities of the Kleinwort Hambros Group that operate under the brand name "Kleinwort Hambros" in the United Kingdom (SG Kleinwort Hambros Bank Limited), Jersey and Guernsey (SG Kleinwort Hambros Bank (CI) Limited) and Gibraltar (SG Kleinwort Hambros Bank (Gibraltar) Limited) Consequently, the information communicated and any offers, activities and financial information presented do not concern these entities and may not be authorized by these entities or adapted in these territories. Further information on the activities of Societe Generale's private banking entities located in the United Kingdom, Channel Islands and Gibraltar, including additional legal and regulatory information, is available at www.kleinworthambros. com
Non-financial analysis, also known as ESG analysis (Environmental, Social, Governance), is essential for evaluating a...
Joint interview, Croisine Martin-Roland, Head of Philanthropic Support, and Jean-Christophe Jouannais, Sustainable...
Key report
According to the Brundtland Report of 1987, sustainable development aims to meet the needs of the present without...
Sustainable finance is a concept that integrates environmental, social, and governance (ESG) criteria into investment...