Ostrum Asset Management has announced a goal to fully phase out coal exposure in its funds by 2030 for OECD countries.
Ostrum Asset Management, a Natixis Investment Managers affiliate, also plans to cut coal exposure by 2040 for non-OECD countries. The their new published policy includes:
1. Ostrum AM will no longer invest in companies that develop new coal projects, with effect as of January 1, 2021 for investments, and with a six-month timescale for divesting holdings in companies concerned under normal market conditions.
2. Ostrum AM will no longer invest in companies that have not set out a transition plan by 2021 to exit the coal sector in alignment with the Paris Agreement, and will undertake individual engagement efforts with any companies that do not already have a withdrawal plan in 2020 to inform them of this timeframe. Investments will cease as of January 1, 2022, with a six-month timeframe to run down existing positions under normal market conditions. Ostrum AM will engage and dialogue extensively with companies as it applies this measure.
3. Ostrum AM halted investment in companies that derive more than 25% of their revenue streams from coal in June 2019, while definitive divestment is slated by June 2021. This exclusion threshold will be reviewed by end-2021.
4. Coal issuers that are not ruled out on the basis of previous criteria will be excluded as of January 1, 2021 if they exceed the other thresholds set out by the 2019 Global Coal Exit List (GCEL), with divestment within six months.
Nathalie Pistre, Head of Research and SRI at Ostrum AM, states: “Our moves to ramp up our coal withdrawal strategy herald a new stage in our contribution to tackling climate challenges and further attest to our responsible investment commitment. We also support our clients as they apply their own climate policies both by rolling out tailored measures and offering investment strategies to help them establish their own pledges.”