The methodologies used to measure the temperature trajectory of an investment portfolio are recent, subject to change, and based on a large number of assumptions. The resulting temperature indicator may vary considerably from one methodology to another, depending on the data used and the assumptions made.
- Amount of investment in green and sustainable bonds (in billions of euros of assets under management): this is the aggregate amount of investments made by all affiliates.
- Exposure to the fossil fuel sector (as a % and in billions of euros of assets under management): this corresponds to the share and aggregate amount of investments in corporate issuers exposed to the fossil fuel sector. The scope of this indicator is corporate assets, of which €522 billion are covered by S&P Trucost data. For issuers with diversified activities, the sector exposure of each issuer is weighted by its revenues.
Several affiliates measure and publish indicators specific to their individual climate commitment policies. For further details, please refer to the management reports of each affiliate or to the Natixis TCFD report.
CLIMATE ALIGNMENT METRICS MONITORED FOR THE GROUP’S INSURANCE ACTIVITIES:
- Carbon intensity of investments (expressed in metric tons of CO2 equivalent per million euros invested, tCO2-eq/€m): this is the carbon footprint of investments divided by their value (market capitalization for listed assets). The carbon footprint of each portfolio company is assessed using the Carbon Impact Analytics 6 (CIA) method and data provided by Carbone 4, which includes both the emissions ‘induced’ by the company’s activity in a life cycle approach (scopes 1, 2, 3), and the emissions ‘avoided’ through efficiency efforts or the adoption of low-carbon solutions by the company. For its insurance activities, Groupe BPCE calculates and publishes the carbon intensity of each asset class: equities, corporate bonds, sovereign bonds, and illiquid assets (real estate, infrastructure).
- Temperature indicator (TI, expressed in degrees Celsius, °C): this metric estimates the aggregate warming potential of investments, i.e. the temperature increase relative to pre-industrial levels induced by the portfolio assets. The method used is that developed by Mirova, which establishes a correspondence between the induced and avoided carbon emissions provided by Carbone 4 aggregated at the level of the investment portfolio and the temperature indicator of the portfolio based on the scenarios drawn up by the International Energy Agency.
- Share of green assets in the portfolio (as a % of the total investment portfolio): assets defined as ‘green’ are green bonds or sustainable bonds (when the underlying investments are climate-related) and bonds and shares of issuers eligible for investment funds with the GreenFin label.
- Amount of investment in green and sustainable bonds (in billions of euros of investment).
- Exposure to the fossil fuel sector (as a % and in billions of euros of assets under management): this corresponds to the share and amount of investments in corporate issuers exposed to the fossil fuel sector. The percentage is calculated in terms of the market value of the assets. For issuers pursuing a variety of different activities, the sectoral exposure of each issuer is weighted by its revenues. All activities in the sector’s value chain are covered.
