In helping bring home the fight against climate change, Lyxor is placing climate issues at the core of its responsible investment strategy with a new Climate Policy, structured around four main pillars:
1) Divesting from coal where possible
Coal divestment is a key factor in the transition to a greener future. Within its active funds, Lyxor has decided to withdraw from companies most exposed to the sector by excluding those that generate more than 10% of their turnover from thermal coal mining activities, and energy sector companies for which over 30% of the electricity production is derived from coal. The same policy applies to the holdings of substitute baskets in Lyxor’s swap-based ETF range. Lyxor has divested EUR 350 million to date.
2) Designing innovative solutions for climate transition
In line with its culture of innovation, Lyxor will continue to play a pioneering role in the development of pro-climate investments. Having recently expanded its Green Bond ETF offering, the latest of its ‘listed impact’ range centered around the UN’s Sustainable Development Goals, Lyxor has ambitious plans to keep helping investors decarbonise their portfolios with dedicated investment tools.
3) Acting as a committed and responsible shareholder
Continuing its commitment to the UN-supported Principles for Responsible Investment (PRI), Lyxor is implementing an engagement policy comprising two complementary components: a climate-change voting policy allowing for objections at general meetings to votes on a number of resolutions in the event of environmental controversies, and an increased focus on partnerships with financial and non-financial actors involved in the fight against climate change.
4) Assessing the climate-related risk of portfolios
Lyxor believes it is vital to assess the climate risks of all of its funds under management, beyond the overall ESG risks. As such, Lyxor has developed a proprietary methodology to reference simple and easily measurable indicators on both the risks and opportunities associated with climate change in portfolios. These indicators include, for example, portfolio carbon footprints, share of fossil reserves investors would be responsible for, and use of cleaner energy sources. Monthly ESG reports detailing these metrics can be found on our website for our full range of equity and fixed income ETFs.
The main objective of Lyxor’s new Climate Policy is to provide a framework for taking climate issues into account in our everyday business as an asset manager. We recognise our role in contributing to the global ambition of keeping global warming below two degrees by 2100, and we’re doing everything we can to put investment at the service of the transition to a low-carbon world.
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