Biodiversity

CPRAM launches a biodiversity investment strategy

CPRAM announces the launch of an investment strategy to promote  biodiversity. This launch flows from research carried out by CPRAM teams in laying out its biodiversity strategy, with the scientific backing of the French Natural History Museum1.

Launched in December 2023 and at first reserved for large French institutional investors (pension funds, insurance entities, and large companies), this strategy had drawn almost 40 million euros in inflows by 10 January 2024.    

Published on 15 January 2024

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According to a study by the World Economic Forum, half of global GDP depends on nature and its ecosystemic services2. Pressures being exerted on biodiversity that have been identified by IPBES3 are many and varied, including overexploitation of resources, climate change, pollution and non-native invasive species. Failure to take action to preserve biodiversity now costs 500 billion dollars annually4.

CPRAM’s investment strategy addresses this need to combat depletion of biodiversity and to promote investments by companies that have engaged in good practices in biodiversity. Its strategy is part of a deliberate framework in which it addresses transition challenges:

  • The strategy covers all sectors, particularly those having a heavy environmental impact; 
  • It excludes companies that harm biodiversity (for example, those involved in pesticides, palm oil, and deforestation), those subject to major environmental controversies, and those that have poor ESG practices; 
  • It selects companies that are among the most committed within their sectors to reducing their impact on water, soil and the climate and, hence, on biodiversity. 

CPRAM bases itself on the IPBES and SBTN5 methodological frameworks and aims to address Kunming-Montréal6 objectives that are within reach of financial investments.

In laying out this investment strategy to promote biodiversity, CPRAM teams are backed by the scientific research of the French Natural History Museum (“the Museum”).

As biodiversity is part of the Museum’s research and scientific expertise, this partnership will perpetuate  planning efforts throughout the life of the strategy7.

For 2024, CPRAM aims to continue the research work it has initiated on biodiversity and to enrich its strategy by embracing methodological shifts and progress in environmental data. Its objective is to propose a solution in favour of biodiversity for its distributor clients. 

This research and launch by CPRAM is part of Amundi’s commitment to better integrating biodiversity in its in-house analysis and investment processes. In doing so, in 2021 Amundi joined the Finance for Biodiversity Pledge8 initiative, signatories of which have pledged to assess their impact on biodiversity, and to set objectives and issue reports on biodiversity as part of their investment and financing activities. Meanwhile, for its role in preserving natural capital naturel and protecting ecosystems, biodiversity is one of Amundi’s priority engagement themes9

And, lastly, promoting nature and biodiversity is enshrined in Crédit Agricole SA’s declaration on biodiversity and natural capital.

Olivier Mariée, CEO of CPRAM, said: “We have been committed since 2018 to addressing climate change and are now taking up the challenge of biodiversity. CPRAM remains loyal to its mission of assisting companies in integrating biodiversity challenges, while encouraging investors to steering capital towards the preservation of natural capital. Thanks to the scientific backing of the French Natural History Museum, we have at our disposal first-rate capabilities in striving towards a more sustainable future.”

    1 https://www.mnhn.fr/en
    2 https://www.weforum.org/agenda/2023/02/biodiversity-nature-loss-cop15/
    3  https://www.ipbes.net/
    4 “Biodiversité : le WWF chiffre à 500 milliards de dollars par an le coût de l'inaction” | Les Echos
    5 https://sciencebasedtargetsnetwork.org/
    6 https://www.cbd.int/gbf/
    7 The expertise provided by the French Natural History Museum and its experts in no way deals with the fund’s investment process, portfolio construction and/or stock-picking. CPRAM remains solely responsible for implementing this strategy.
    8 https://www.financeforbiodiversity.org/
    9 Biodiversity, protection of oceans, circular economy, plastics and deforestation.

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