Candriam is extending the exclusion of coal, tobacco and controversial weapons across its entire range of assets by the end of the year.
The European asset manager said in a statement it will implement its controversial activities exclusion across its active smart beta, index and alternative strategies, which account for €113bn of assets under management (AUM).
Candriam has been running an exclusion policy for almost 20 years across its pure socially responsible investment (SRI) assets, which currently account for €30bn AUM.
Now it will exclude from its mainstream range of funds companies that derive more than 10% of their energy from thermal coal and ban companies that launch new coal projects. It will also exclude tobacco manufacturers and suppliers.
It will also exclude manufacturers of chemical, biological and white phosphorus weapons.
Candriam chief executive Naïm Abou-Jaoudé said excluding tobacco and coal is part of the firm’s commitment to be a sustainability leader.
He said: “Coal is the most polluting energy source and the first stranded asset in an energy transition pathway, while the harmful effects of tobacco are increasingly exposed. We recognise the important role asset managers play in tackling major global issues such as health and climate.”
Candriam chief investment officer Vincent Hamelink added: “Over the years we have witnessed a growing concern over involvement in a range of controversial activities. At Candriam we believe that the health, social and environmental costs are key in a risk-return analysis.
“Extending our divestment strategy to our mainstream funds is a logical next step as investments in these companies are increasingly incompatible with our long-term risk/return objectives and our sustainability targets such as the 2 Degrees Initiative.”
