Portfolio Decarbonization Coalition reached to 600 billion dollars AUM

The Portfolio Decarbonization Coalition reached to 600 billion dollars assets under management (AUM) durign the Paris Climate Talks. As the Paris talks ended with the ambition to limit the temperature rise to 1,5 degree, the Portfolio Decarbonization Coalition exceeded six times its orginial target of 100 billion dollars AUM. The new signatories are big institutional investors: Allianz and ABP.

– More and more companies and states will incorporate climate change considerations – they are going to address physical climate risks, they want to reduce emissions and they have to reflect regulatory needs and developments,“ Mr Oliver Bäte, CEO of Allianz said in the press release.

– We will anticipate these risks and opportunities. Allianz’s climate and decarbonization actions will include the phasing out of coal investments, the use of environmental, social and governance scoring in investment decisions across its portfolio of own investments, and scaling up its investments in renewable energy, he continued.

The Coalition was co-founded by the United Nations Environment Programme Finance Initiative (UNEP FI), the fourth National pension fund of Sweden, AP4, Europe’s largest asset manager Amundi and CDP in September 2014.


Business Finance

The results of Climate talks on Wednesday?

facebook-1 COP21

The main results of the global climate talks COP21 in Paris  will be announced on Wednesday this week. According to BBC News and Huffington Post, negotiations are expected to conclude on Wednesday  and the final agreement would be ready later this week. The official signing ceremony would then be in 2016.

The biggest issues are still the 2 degrees Celsius versus 1,5 Celsius target. According to the news, France and Germany have joined the countries demanding the 1,5 degrees Celsius in order to protect the most vulnerable countries. The second big discussion issue is the financing of the climate fund.

Business Finance

Portfolio Decarbonization Coalition to reach 230 billion dollars AUM before the Paris talks

The Portfolio Decarbonization Coalition (PDC) has reached 230 billion dollars assets under management before the Paris COP21 meeting. The initial target was 100 billion dollars, so it shows a dramatic increase in the target.

The new members include for example Hermes Investment Management in the UK, MN Services in Netherlands, BNP Paribas Investment Partners and Caisse des Depots in France.

– As one of the founding members of the Portfolio Decarbonization Coalition, Amundi is honored to see the Coalition reach and exceed the US 100 billion dollars target. It sends a signal to the markets that asset owners are tackling climate change related risks on a large scale. Amundi will continue to actively support the Coalition and investors by providing innovative investment solutions and affirming its role as a corporate citizen, said Mr. Yves Perrier, CEO of Amundi in the PDC´s press release.

According to Mr Frederic Samama, Amundi Deputy Global Head of Institutional & Sovereign Clients, this autumn has been very positive towards the low carbon thinking.

– We have never seen such a movement towards portfolio decarbonization as now before the Paris COP21. And there might be the possibility that the target will even grow from this during the climate talks, he says.

– Many asset owners have realised that this is a question of risk management of climate change and economic decisions. And we in Amundi have been pleased to help the financial markets to hedge the climate change risk as we introduced the first low carbon products this year, he continued.

The Portfolio Decarbonization Coalition is a multi-stakeholder initiative that will drive greenhousegas emissions reductions by decarbonization of portfolios. The coalition was founded by UNPE FI, Amundi, AP4 and CDP in September 2014.

– It is cruisial, and my responsibility, that we create the right outcomes from our investment decisions – and the right outcomes on a 30-year time horizon are those that mitigate risk, including carbon risk, said Saker Nusseibeh, the CEO of Hermes Investment Management in the release.

– In line with our duty to our long term customers and our 20 year history of sustainable investments, we are proud to join the PDC. It is a natural step for us to join a community of peers to share learning and inspire the business on lowering carbon risk and creating value to investors, said Odd Arild Grefstad, CEO of Storebrand.

– The PDC offers us a valuable platform of like-minded parties with whom we can collaborate to fulfill our clients climate action agenda, said Rene van de Kieft, CEO MN Services in the Netherlands.

Portfolio Decarbonization Coalition (PDC) members include A Capital, Amundi,AP4, Australian Ethical Investment, Church of Sweden, Environment Agency Pension Fund, ERAFP, Fonds de Reserves des Retraites, KLP, Local Government Super, Mandatum, Mirova, Point Capital Management, Robeco SAM, Sonen capital, Storebrand, Toronto Atmospheric Fund, University of Sydney, Hermes Investment Managment, BNP Paribas Investment Partners, CDC, Storebrand, MN Services in the Netherlands, Humanis.

Amundi is the European leader in Asset Management industry with AUM more than 950 billion euros. The company is known for its product performance and transparency, quality of client relationships based on long-term advisory approach, efficiency and commitment to sustainable development and socially responsible investment policies.




















Business Finance

Asian stock markets were steady during Monday

The Asian Stock Markets were steady during the Monday trading after the Paris Attack in France on Friday. The Nikkei Stock Average 225 fell 1,04 percent, but the Shanghai Composite Index rose 0,73 percent. Hang Seng Index was down 1,50 percent.

According to the markets, airline and tourism stocks were the most decliners, but the overall trading volume was light. For example in Tokio the volume was 1,78 billion shares. The markets were expecting the trading to start in Europe to see how the markets are developing further.

Business Finance

Financial markets are expected to open normally on Monday after ParisAttack

Financial markets are expected to open normally on Monday after the Paris attack. During the attack at least 129 people were killed on the streets and in a concert venue late on Friday night. Several market professionals are expecting the market opening in Asia to be smooth and thus avoiding big changes. This will help the opening bell in Europe as well.

– History will tell us that if the economic impact is limited, and I think it will be, the markets will quickly recover, said head of strategy Shane Oliver from Australia AMP Capital to Reuters.

Euronext, the Paris Stock Exchange also informed during the weekend, that the markets will open normally on Monday. One of the newcomers in the Stock Exchange is Amundi Asset Management, which started trading last week. Amundi´s market cap is about 7,7 billion euros and the company´s IPO was the biggest IPO in Paris in ten years.

The Paris Attack might have some impact on the tourism, while the country is the number one for global travellers. This industry sectors accounts about 7,5 percent of the country´s GDP. The Group20, with leading industry leaders, will meet today on Sunday in Turkey to discuss about the Paris Attack.

Business Finance

Tesla on track with Model S deliveries – new CFO from Google

The Californian electric car manufacturer Tesla (TSLA) announced yesterday evening its third quarter results. According to the press release, the deliveries of the sport utility vehicle (SUV) Tesla S-model is on track and the company said it will reach the year targets this year. Tesla said it has delivered a record of 11.603 new cars during the quarter and expect the shippings to be 17.000 – 19.000 vehicles during the last quarter.

Tesla said also that the orders related to the new luxury crossover Model X have been accelerated during the period. The shippings are expected to happen during the next year in Europe. Third quarter revenue were 936 million dollars, compared to 954 million dollars during the previous quarter. Gross margin was 25,1 percent. Loss before income tax was 228 million dollars compared to loss of 188 dollars during the previous quarter. The loss per share was 1,78 dollars.

The company also said it has updated about 40 000 cars with its new autopilot programm. It helps drivers to avoid risks related to front and side collisions and keep the car on the road. On the other hand Tesla is also thinking ways how to enhance the safety issues among drivers when using autopilot.

Company also announced a new CFO, Jason Wheeler, who will start his job during November. He is former executive in the Google´s Finance division.

During the conference call, an analyst from Morgan Stanley, asked about Tesla´s long term strategy related to ondemand autoplatform. The idea of this, if Tesla is seeking also new cash generated income models through sharing economies, like Tesla´s own on-demand autoplatform. CEO Elon Musk did not close any comment on that.

Tesla (TSLA) shares closed down 2,5 percent to 208,35 dollars, but after hour trading the share was up nearly 9 percent.

Business Tech