More than 80% of investments made by French insurer CNP Assurances have been screened for environmental, social and governance (ESG) factors – the highest percentage in the market, the company claimed.
Some €242bn ($300bn) of assets undergo extra-financial analysis because the insurer is convinced that ESG factors help optimise the risk and return of investments over the long term.
For example, on listed equities, CNP selects 'best in class' companies and monitors their ESG performance quarterly. If issues arise, CNP said it will engage with companies first, but divestment is always possible. Corporate bonds also receive quarterly ESG ratings and the investment universe is limited to those companies that meet the principles of the UN's Global Compact.
On government bonds, CNP avoids non-democratic countries and those deemed corrupt by Transparency International, a non-governmental organisation that fights corruption.
CNP holds its assets for the long-term – on average seven years for equities and to maturity for bonds.
The insurer's €6bn of property assets are monitored for environmental and safety issues, for example on energy consumption. Action plans to improve performance are developed for each building.
CNP is also the largest private owner of forests in France, with more than 54,443 hectares all certified to the Programme for the Endorsement of Forest Certification and ISO 9001.