MIL OSI Translation. Government of the Republic of France statements from French to English –
Launched at the initiative of President Emmanuel Macron during the One Planet Summit in 2017, the One Planet Sovereign Wealth Fund (OPSWF) working group aims to accelerate efforts to analyze and take into account the risks and opportunities associated with climate change in the management of large, long-term and diversified asset portfolios.
Composed at the outset of six sovereign funds, investment funds owned by a State, (Abu Dhabi, Kuwait, New Zealand, Norway, Saudi Arabia and Qatar), the working group published in July 2018 a Framework, to which its members adhere. members, aimed at responding to the challenges of climate change and based on three key principles:
The alignment principle which aims to integrate climate change considerations into fund investment decisions;
The principle of responsibility which encourages the companies in which the funds invest to take ownership of the issues related to climate change by integrating them into their governance, strategy, risk management and reporting;
The principle of integration which requires taking into account the risks and opportunities linked to climate change in the management of investments in order to improve the resilience of long-term portfolios.
Since then, eight asset managers, companies responsible for optimizing their clients’ financial investments (Amundi AM, BNP Paribas AM, Natixis IM, BlackRock, Goldman Sachs AM, HSBC Global Asset Management, Northern Trust AM and State Street Global Advisors ) have joined the coalition and adhere to the Framework. These asset managers form the One Planet Asset Managers (OPAM) initiative.
This Friday, November 20, the President of the Republic, Emmanuel Macron, invited the leaders of 14 sovereign funds, 14 asset managers and 5 private equity funds to take stock of the means to accelerate the global transition towards a carbon neutral economy where people and the planet can prosper together. During this Summit, a series of concrete actions were presented and new announcements were made:
9 new sovereign wealth funds: Mubadala (Abu Dhabi), FONSIS (Senegal), NIFF (India), Bpifrance, ISIF (Ireland), COFIDES (Spain), NIC (Kazakhstan), CDP Equity (Italy), Korea Investment Corporation (Korea South);
6 new asset managers: AXA IM, Invesco, Legal & General IM, Morgan Stanley IM, PIMCO and UBS AM;
5 new private equity funds, forming a new One Planet Private Equity (OPEF) initiative: Ardian, Carlyle, Global Infrastructure Partners, Macquarie, Sofbank Investment Advisers.
In total, the initiative now brings together 33 financial institutions managing more than $ 30 trillion, a 10-fold increase from the founding members and representing nearly 30% of global assets.
These decisions are intended to disseminate the principles and ambitions of the OPSWF throughout the investment chain, through the influence of these funds which are at the beginning of that chain. They will allow the coalition’s principles to be deployed more widely and to develop its initiatives for the next 12 months, as the international community will meet in November 2021 for COP26 in Glasgow.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and / or sentence structure not be perfect.