CPR AM, the Paris-based boutique owned by Amundi, has partnered with a French pension provider to develop new environmental, social and governance (ESG) filters, the company has announced.
CPR AM worked with Ircantec to develop the filters, which will enhance risk management in portfolios by focusing on areas the firms believe are overlooked by conventional ESG approaches.
The firms have been working together on the project since 2016 to develop an ESG approach for developed market equities and investment grade European corporate bonds.
CPR AM said the approach is different as the emphasis is on ESG factors that are thought of as ‘weak signals’ by traditional ESG analysis. These include factors such as labour relations, water management, energy consumption and shareholder rights.
The new methodology will be rolled out by CPR AM for its different asset classes and thematic investments in the coming months.
Commenting on the partnership, Arnaud Faller, who is the deputy CEO of CPR AM, said: ‘This innovative approach to analysing ESG risk factors notably allows investors to mitigate sources of “market stress” and will drive our commitment to being responsible investors.’