FDC has been implementing a responsible investor policy since 2010. As a first pillar, FDC implemented an exclusion list based on international conventions ratified by the Grand Duchy of Luxembourg. At the same time, FDC decided to pay more attention to sustainable criteria in its public tenders for its asset managers. Since then, FDC's responsible investor policy has continuously evolved and deepened.
The fight against global warming and the energy transition have an impact on the financial sector as a whole. Being aware of the importance of such concerns and complying with its fiduciary duty, FDC reported in detail on its responsible investor policy in 2020. Through this report, FDC had drawn up a transparent inventory and thus publicly confirmed its commitment as a responsible investor.
Since then, FDC decided to publish an annual carbon audit as well as, on a three-year basis, FDC’s transition trajectory, to assess compatibility with the Paris Agreement limiting global warming to well below 2°C, ideally 1.5°C.
Today FDC thus publishes its second annual carbon audit report exposing carbon data of FDC’s portfolios, while highlighting the key elements of its responsible investor policy in relation to the year 2022 as well as any ongoing and planned sustainable enhancements and developments.
Compared to 2021, FDC’s portfolios showed, for nearly every carbon metric and irrespective of the scope of emissions considered, significant decreases ranging from -4% to -14%. Compared to the broader markets, represented by the different benchmarks retained within the carbon analysis, a similar conclusion can be drawn. For example, and depending on the scope of emissions considered, FDC’s equities and fixed income portfolio showed a 24% (Scope 1&2 emissions) to 17% (D&FTI emissions being Scope 1, Scope 2 and Scope 3 emissions of the first tier of the supply chain) lower carbon footprint than the broader market. Additionally, its sovereign portfolio showed respectively 18% and 17% lower carbon metrics.
If some sustainably certified or labelled assets varied unfavourably with respect to sustainability considerations during 2022, this was mainly because of market movements, not investment decisions undertaken by FDC. Indeed, decisions FDC has undertaken include the launch of an additional passively managed sub-fund targeting investments aligned with the Paris agreement of 500 million euros, the publication of a tender for a new sub-fund foreseeing investments of 500 million euros in sustainable and clean energy infrastructure assets and the start of an engagement policy towards the largest corporate greenhouse gas emitters in 2024.