As investors in green bonds, we are presented with an increasingly wide range of positive environmental impact projects to potentially allocate capital to. In doing so, we believe it is important to seek out instruments from high quality issuers with strong environmental profiles.
One such issuer, in our view, is CNP Assurances, a leading personal insurer in France, which has issued a green bond investing in 50% new projects and 50% refinance. Among the projects in which the bond invests is a green office building in Issy-Les-Moulineaux in France, which is part of the area’s new eco-district and where CNP is also building its new headquarters, scheduled for completion in 2022.
The building, which was built in 2019 and acquired by CNP in 2020, has a number of environmental certifications including a Habitat Quality Assessment (HQA) rating of excellent, a Building Research Establishment’s Environmental Assessment Method (BREEAM) rating of very good, and Effinergie+.
The project will have an incremental impact as the building was acquired after the green bond’s issuance. Among CNP’s sustainability strategy highlights are its net zero commitment by 2050 including the group’s investment portfolio, and 2025 science-based targets to reduce the carbon footprint of its direct equity and corporate bond portfolio by 25% and its real estate footprint by 10%. It also has targets based on recognised scenarios and methodologies including the Intergovernmental Panel on Climate Change (IPCC) 1.5C pathway and Carbon Risk Real Estate Monitor 1.5C pathway.
CNP’s environmental profile scores in the highest category in our internal scoring model, rated ‘very low risk’ given a robust climate strategy and other environmental initiatives around biodiversity.
The information in this document is given for information purposes only and does not qualify as investment advice. Opinions and assessments contained in this document may change and reflect the point of view of GAM in the current economic environment. No liability shall be accepted for the accuracy and completeness of the information. Past performance is no indicator of current or future trends. The mentioned financial instruments are provided for illustrative purposes only and shall not be considered as a direct offering, investment recommendation or investment advice.