Our Sector Policies
"We refer to sector policies rather than exclusion policies, as we support companies and help them stage their transformations: we hold constant dialogue with them to encourage them to enhance their practices: exclusion is the last resort in our view."
Joséphine CHEVALLIER, ESG Strategy Expert Leader
Ostrum Asset Management has rolled out a series of strict exclusion and sector policies to exclude all sectors and issuers that do not comply with certain fundamental responsibility standards from our investment universe. Somme policies apply to all our funds (controversial weapons, Worst Offenders), while others cover all our open-ended funds (Tobacco, Coal, Oil and Gas*). We also offer tailored exclusion policies for our clients to support them in meeting their own individual goals.
* Excluding benchmark management, and excluding structured products existing on 01/01/23, regardless of the types of exclusion (excluding regulations), and in accordance with the objectives and constraints related to the contractual documentation of our clients.
Controversial Weapons and Worst Offenders exclusions are purchased on all our funds, and on existing stocks unless clients request otherwise for our mandates.
Ostrum’s Oil and Gas policy plans adjustments to enable a gradual convergence of structured management and quantitative management, integrated into the scope on 01/01/23, with the aim of fully withdrawing from unconventional and/or controversial oil and gas exploration and production businesses by 2030 according to the pre-existing policy of Ostrum AM.
Coal: an ambitious sector policy
In 2021, Ostrum AM stepped up its sector-based policy aimed at withdrawing from the coal sector. It now excludes companies that:
- develop new coal capacity
- have not by 2021 defined a coal exit plan in accordance with the Paris Agreement
- exceed the following thresholds:
- 20% of energy generation revenue
- streams derived from coal or from coal production
- 10 m tons of thermal coal
- 5 GW of installed coal capacity
- a coal share of power generation of 20%
Oil and gas
As of 2022, we no longer conduct any fresh investments in companies that derive more than 10% of production in unconventional and/or controversial oil and gas exploration and production operations : categories have been defined as techniques that rely on fracking procedures (shale oil and gas, tight gas and liquids) or that use ultra-deep offshore drilling, drilling in the Arctic, and extraction from tar sands, coalbed methane and extra-heavy oil. Ostrum AM iinteds full withdrawing from these activities in 2030.
This policy will apply to all open-ended funds, dedicated funds and mandates (unless clients request otherwise).
Ostrum Asset Management’s move to fully withdraw from unconventional and/or controversial oil and gas exploration and production operations by 2030 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. We 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.
Following the absorption of Seeyond by Ostrum AM and the transfer to the latter of the institutional insurance management and structured management activities of NIM Solutions (01/01/2023), the funds historically managed by Seeyond and NIM Solutions will gradually converge towards Ostrum AM’s pre-existing policy, with the same final aim of fully withdrawing from unconventional and/or controversial oil and gas exploration and production businesses by 2030.
Ostrum Asset Management excludes from all its portfolios companies involved in the use, development, production, sale, distribution, stockpiling or transport of the following weapons categories:
- Anti-personnel mines;
- Cluster bombs;
- Chemical weapons;
- Biological weapons;
- Nuclear weapons (outside the framework set by the Treaty on Non-Proliferation);
- Depleted uranium weapons.
These pledges comply with the Ottawa Treaty, the Oslo Convention, the Chemicals Weapon Convention, the Biological Weapons Convention, the Treaty on the Non-proliferation of Nuclear Weapons.
This policy (excluding regulatory exclusions) applies to the purchase for all our funds (including mandates), and also to existing stocks for open and dedicated funds, with the exception of index management, structured products existing on 01/01/23, and excluding specific constraints related to the contractual documentation of our clients. Regulatory exclusions (BASM MAP) apply to all our purchase funds and to existing inventory.
Since 2018, Ostrum AM has been committed to halting support for the tobacco sector, which has particularly negative social and environmental effects and runs contrary to the United Nations Sustainable Development Goals.
Ostrum AM excludes from the investment scope all companies – both listed and unlisted – that are proven to contravene a range of fundamental responsibility standards (United Nations Global Compact, OECD Guidelines), particularly as regards human rights, labor rights, environmental protection and business ethics.
This policy applies to the purchase for all our funds (including mandates), and also to existing stocks for open funds and dedicated funds, with the exception of benchmark management, structured products existing on 01/01/23, and excluding specific constraints related to the contractual documentation of our clients.
Our CSR News