Driven by its fiduciary responsibility as a leading investor, Ostrum Asset Management is taking further action to tackle the pressing climate emergency and announces the full withdrawal from unconventional and/or controversial oil and gas exploration and production businesses by 2030 i.e. businesses that rely on fracking operations – shale oil, shale gas, tight liquids and tight gas – and operations based on ultra deepwater drilling, drilling in the Arctic1, as well as extraction of tar sands, coalbed methane, and extra-heavy oil.
Ostrum AM will no longer conduct any fresh investments in companies that derive more than 10% of their hydrocarbons production from these activities as of 2022. This policy also covers companies that work right along the production value chain and are involved in exploration, development, and operation. Ostrum AM may review this threshold and reduce it further in the future.
This policy will apply to all open-ended funds managed by Ostrum AM, as well as mandates and dedicated funds, unless clients decide otherwise.
Ostrum AM intends to fully withdraw from non-conventional and/or controversial oil and gas exploration and production operations by 2030. This initiative will be a priority focus for our engagement – via dialogue and our voting policy – with the companies we invest in across our equity and bond portfolios. Ostrum AM will also undertake active dialogue with all sector issuers to discuss how their strategies fit with the recommendations from the International Energy Agency with a view to meeting the Paris Agreement.
For Further Reading:
- Ostrum AM Presses on With its Fight Against Climate Change
- Ostrum Asset Management Ramps Up its Coal Sector Withdrawal Policy
Ostrum Asset Management draws on data from the GOGEL (Global Oil & Gas Exit List) from NGO Urgewald.
Integration of ESG dimensions involves including ESG matters in analysis and investment decisions. Our ESG integration approach varies from one fund to another, and incorporation of ESG factors does not necessarily mean that investment vehicles seek to drive a positive ESG impact.
Ostrum Asset Management
An affiliate of Natixis Investment Managers.
French Public Limited liability company with board of Directors.
Share capital €48 518 602.
Regulated by the Autorité des Marchés Financiers (AMF) under no. GP 18000014.
RCS Paris n° 525 192 753.
43 avenue Pierre Mendès France 75013 Paris, France.
Natixis Investment Managers
Natixis Investment Managers is a subsidiary of Natixis.
Portfolio management company - French Public Limited liability company
RCS Paris n°453 952 681
Registered Office: 43, Avenue Pierre Mendes France – 75013 – Paris.
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.