2. Our analysis: a big step foward
An important addition to this of the policy is the exclusion of developers of coal mining or infrastructure projects, companies who are still planning to expand this sector right when it needs to be rapidly wound down.
The change from an exclusion threshold from 30% to 20% follows the evolution of the selection criteria of the Global Coal Exit List, updated last November by our German partners at urgewald.
On the other hand, Groupama is missing an opportunity to immediately align with the thresholds of 10 MT and 5 GW retained by the GCEL and already adopted by financial actors such as Crédit Mutuel Assurances. The adoption of an exclusion criterion based on absolute coal production and the installed coal-fired capacity of a company is at any rate more than welcome, as it is a necessary criterion for covering some of the largest coal producers. with highly diversified activities.
The fact that Groupama uses the Global Coal Exit List as a benchmark for its analysis of companies in the sector is a very good thing since it is the most relevant database in this area. All these exclusions may, however, be subject to potential exceptions, when the analysis of Groupama Asset Management, the asset management arm of the Groupama group which manages most of its assets, differs from that of the GCEL. Groupama told Reclaim Finance that only two companies are currently subject to such an exception, which remains a low figure. However, the policy remains elusive on the handling of these exceptions.
In addition, Groupama indicates that it is “gradually withdrawing” from the securities of companies currently eits portfolio, without being able to specify when this process will be completed. This could take several years, which is too long. However, the policy covers around 90% of the group’s own assets excluding sovereign bonds, which is a plus, but not the remaining 10% of assets invested in open funds managed by other asset managers.
Finally, although Groupama has committed to reducing its exposure to coal to zero by 2030/2040 by lowering its exclusion thresholds over time, it is missing an opportunity to request, explicitly and , that the remaining companies in its portfolio adopti a plan to exit the sector within the same time frame, as Crédit Mutuel Assurances and Natixis Assurances are doing.
Groupama’s scores in the Coal Policy Tool