Carmignac: Making a Difference through Active Responsible Investment

Businesses around the world are increasingly finding that sustainable practices, along with Environmental, Social and Governance (ESG) criteria are expected of them. The public realisation of the effects of climate change has manifested itself in a growing scrutiny about the sustainability of organisations and sectors. As steward of its clients’ savings, international asset manager Carmignac believes in applying such ESG criteria, both to outperform, and to act for the general good.

Founded in 1989, Carmignac has maintained an active philosophy of responsible investment, refusing from its very beginnings to invest into tobacco, controversial arms, or into companies lacking governance transparency.

Energy production is a costly exercise and accounts for 25 percent of the world’s CO2 emissions[1]. Carmignac recognises that further development of renewable energy – such as solar or wind – is a necessity if a sustainable future is to be achieved. However, the asset manager also asserts that this energy transition can only happen with metals as a core component. The supply chain of renewable energy requires natural resources, such as copper – a vital input for the production of wind or solar energy. For such resources to be available, the traditional mining companies must step up their production and be in a strong enough position to provide them.

Similarly, by investing in some higher emitting companies, Carmignac seeks to engage as a shareholder to hold such companies accountable to their sustainable commitments and to ensure the desire for a sustainable transition is conveyed to companies from their investors.

On a wider scale, Carmignac is (and has been for more than 30 years) investing into emerging markets to ensure their journey is a sustainable one from an early stage. Poorer countries are often at risk from climate-related challenges. Carmignac is pleased to finance emerging market companies that are meeting those challenges through cleaner energy. Going further, Carmignac also finances other companies who provide societal benefits.

Carmignac is committed to providing value for its clients and believes that investing responsibly is a means to reach this objective. Through its independence and active management, Carmignac is confident that it can raise awareness of the need to take action against climate change and help to change business practices towards a more environmentally friendly economy, contributing positively to society and the planet.

[1] Source: IPCC AR5, 01/12/2014