Candriam to divest from coal, tobacco and weapons firms

CoalLuxembourg-based asset managers Candriam is to sell off all its assets in thermal coal and tobacco firms as well as manufacturers of chemical and biological weapons, in a further sign that the move towards taking environmental, social and governance factors is gathering pace within the investment industry.

The €113 billion fund manager says that it will extend the exclusion policy, which it has operated in its socially responsible strategies for the last 20 years, to its full range of active, smart beta, indexed and alternative strategies.

The firm aims to divest itself of the assets by the end of this year.

Naïm Abou-Jaoudé, who is chief executive of Candriam as well as chairman of its holding company NYLIM International, said: “Excluding coal and tobacco from our mainstream investments is part of our commitment and shows our ambition to be a sustainability leader.

“Coal is the most polluting energy source and the first stranded asset in an energy transition pathway, while the harmful effects of tobacco are increasingly exposed.

“We recognise the important role asset managers play in tackling major global issues such as health and climate.”

©2018 funds europe