Investors may not know how to solve climate change, but low-carbon indexes are growing as a way to start managing the portfolio risks associated with a warming planet, according to Fred Samama, deputy global head of institutional clients at Amundi Asset Management, Europe’s largest asset manager overseeing about 1.4 trillion euros ($1.7 trillion).
Amundi has been offering low-carbon indexes since 2014, based on the MSCI Low Carbon Leaders Indexes. The strategy has grown popular with institutional investors such as Sweden’s AP4 pension fund and Japan’s Government Pension Investment Fund. Last month, the New York State Common Retirement Fund said it would double its commitment to low-carbon strategies to $4 billion. Insurer AXA SA set a target to reach $14.7 billion in low-carbon investments by 2020 and Canada’s second-largest pension fund, CDPQ, said it would boost low-carbon investments 50 percent, adding $8 billion in new investment.
