Credit Agricole Adopts Sweeping Climate Change Policy
June 13 2019 - 1:52PM
Dow Jones News
By Dieter Holger
Credit Agricole SA (ACA.FR) has adopted a sweeping new climate
change policy aligned with the Paris Climate Agreement across its
loan, investment and asset portfolios to make green finance a
driver of growth for the French financier.
The group's new policy has three prongs: corporate governance
overseeing its climate strategy, encouraging clients to transition
into green energy, and realigning loans, investments and assets to
further the goals of the Paris Agreement of keeping global warming
at or below 2 degrees Celsius by the end of the century, Credit
Agricole said Thursday.
In 2021, Credit Agricole said it would apply environmental,
social and governance investing criteria to actively managed funds
and voting decisions of Amundi SA (AMUN.FR), an asset manager in
the group. It will also double Amundi's green investment portfolios
aimed at the environment and social issues to 20 billion euros
($22.6 billion).
In 2022, another EUR6 billion will go to socially responsible
investment loans in the group's liquidity portfolio while the green
loan portfolio of its corporate investment bank will double to
EUR13 billion.
The group will then phase the coal industry out of its
portfolios by 2030 for the European Union, 2040 for China and 2050
for the balance of the world. As it works to that goal, it will no
longer develop business relations with corporations generating more
than 25% of their turnover from thermal coal by 2019, including
coal-based mining and production.
When it comes to its clients, the group will implement a scoring
system to measure their contribution and ability to achieve a
transition to clean energy and fight climate change, the group
said. It will apply the scoring system to large companies starting
in 2020. As part of the scoring, companies will be asked to provide
the group with a detailed plan to pull out of their coal sector and
production assets by 2021.
Three new governance bodies will oversee the climate policy,
including a Societal Engagement Committee, Scientific Committee and
an independent third body that will audit and certify the group's
climate strategy.
Write to Dieter Holger at dieter.holger@dowjones.com
(END) Dow Jones Newswires
June 13, 2019 13:37 ET (17:37 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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