Amundi defends passive approach to ESG after ETF assets soar

  • Date: 02-Feb-2022
  • Source: Financial Times
  • Sector:Economy
  • Country:Gulf
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Amundi defends passive approach to ESG after ETF assets soar

Amundi has rejected climate campaigners’ criticism of its Lyxor acquisition, saying there is scope for including environmental, social and governance objectives in passive investing.

The French asset manager became the second-biggest provider of exchange traded funds in Europe at the end of last year, when it completed the €825mn acquisition of Lyxor.

However, campaigning group Reclaim Finance said the deal “has the potential to be a climate disaster” as it would mean coal investments not covered by Amundi’s pledged limit would almost double.

Reclaim Finance predicted that Amundi’s passive investments will jump from €282bn to €420bn by 2025 as a result of the acquisition. Passive investments are “a key source of [Amundi’s] holdings in polluting companies”, the group said.

Lara Cuvelier, sustainable investment campaigner at Reclaim Finance, said Amundi needed to “fix its passive problem, stop supporting the expansion of fossil fuels and get tough with big polluters” if it wanted to be a climate leader.

“We recommend that Amundi close its loophole for passive investing,” she said. “A net zero commitment should go alongside a commitment to not working with clients with a lot of involvement in coal.”

Jean-Jacques Barberis, Amundi’s head of institutional client coverage and ESG, defended the group against the campaigner’s criticism, however.

“We don’t