Climate Finance Day: Caisse des Dépôts steps its low-carbon strategy up

Three days devoted to putting finance at the heart of the fight against global warming and its consequences. The UNEPFI Global Roundtable and the Climate Finance Day brought together in Paris from 26 to 28 November the major players in the sector mobilized to face this challenge for the planet. Caisse des Dépôts, a partner of the event since its creation, took the opportunity of the 4th edition to present an assessment of the actions already undertaken and its new commitments.

Energy and the environmentFinance
30November2018
Caisse des Dépôts is fully committed!

In a context of tentative actions and urgency, Caisse des Dépôts has decided, through the intermediary of its CEO, to go on the offensive:

The financial world is a powerful lever. Finance cannot do it all, but its role and its responsibility in allocating capital will be vital. As one of the main financial players, Caisse des Dépôts certainly has an important part to play: we are fully committed to this battle.

The Group intends to contribute towards maintaining France’s leading financial position and its pioneering status for the purposes of implementing the Paris Agreement.
Caisse des Dépôts is determined to accelerate and intensify its low-carbon strategy, with the conviction that climate action also means combatting social and territorial inequalities:

 

Our 5 levers for action:
1. Climate risk assessment and management

The works carried out at international scale, including by the main central banks, agree on the absolute need to include climate risks in the management of operational, economic and financial risks.

Caisse des Dépôts, having already started to include such risks in its global risk policy, will continue and ramp up this approach.

 

2. Decarbonising portfolios

Our initial goals in terms of decarbonising investment portfolios have been surpassed.

Since 2014, the carbon footprint of the Caisse des Dépôts’ listed equity portfolio has been reduced by 37% and that of its corporate bonds by 54%. For the management of its property investment portfolios, Caisse des Dépôts has set out a policy containing climate goals which should enable it to reduce energy consumption by 38% by 2030. It has already reached nearly half of this target.

Caisse des Dépôts will actively continue its efforts to reduce its footprint across all of its investment portfolios, worth €150bn.

 

 3. Shareholder commitment to the 2°C alignment target

Caisse des Dépôts, as a shareholder, expects transparency and climate resilience. This involves a demanding dialogue with shareholders, a real exchange on long-term corporate strategies, particularly in sectors in which transition is a major challenge, such as Oil & Gas, but also in sectors that are major fossil energy users.

The results of these discussions contribute towards decisions regarding the management and the carbon steering of portfolios.

For this reason, during the first half of 2019, Caisse des Dépôts will launch a new large-scale survey of those companies most exposed to risks, but also to climate opportunities.

 

4. Financing ecological and energy transition

Caisse des Dépôts had committed to providing €15bn in funding to energy and ecological transition between 2014 and 2017. This target has been reached, as €18bn has been allocated in 4 years.

Caisse des Dépôts and Bpifrance now target €16bn in funding between 2018 and 2020.

“To put this number into perspective, 22% of our loan financing will have a positive effect on climate, a target similar to those that other public banks have set themselves.” according to Eric Lombard.

Banque des Territoires, a new directorate created last May, will be particularly involved in helping territories with their transition, which must be fair and inclusive.

Banque des Territoires will also provide a large range of new dedicated offers for its clients who are concerned with preserving biodiversity, limiting the temperature increase and adapting to climate change.

 

5. An exclusion policy on thermal coal

Caisse des Dépôts is set on the path of total disengagement with a more drastic exclusion policy commencing in 2019.

The institution will no longer invest - directly or through funds - in companies whose carbon activities represent over 10% of their turnover (until now, this threshold was 20%).

The implementation of this commitment, the data on which will be systematically made available in our reports, will always be certified by statutory auditors.

 

To have a chance at meeting the 1.5°C target, we need to be more ambitious in all financial activities, to collaborate more with investors, companies and public authorities, and to be more transparent on how we respond to this challenge.


concluded Eric Lombard

 

Haut de page