Last week, CDP hit the headlines with its new portfolio temperature-printing methodology. Amundi, Europe’s largest asset manager and the first to employ the new rating system, was given a 2.7°c stamp for its Amundi Funds Global Equity Sustainable Income, taking into account Scope 1, 2 and 3 emissions. Not a bad result.
The strange thing was that the fund’s top holdings included Total, the French oil & gas company. At RI, we were puzzled.
When we asked CDP, the non-profit told RI: “The method is based on forward-looking, science-based targets, which means that some companies in traditionally higher-emitting sectors – like Total – may have lower temperature scores than expected for their sector.” It didn’t comment on whether Amundi paid CDP to use its new temperature rating.
The response did not clear up the confusion, and raises questions around to what extent it is prudent to base ratings that relate to financial risk on distant targets …