Unification across age groups: Ircantec's strategic plan for reducing carbon emissions unveiled
In a significant move towards a greener future, Ircantec, a prominent French pension plan serving public sector workers, has announced a robust commitment to decarbonization and sustainability in its investment strategy.
At the core of this strategy is a pledge to invest around 20% of its portfolio into transition assets, which encompass investments that support the shift towards a lower-carbon economy. This substantial allocation of capital demonstrates Ircantec's dedication to projects and companies aligned with energy transition goals.
The strategy also includes ongoing efforts to expand investment in transition assets, implying a continuous growth in exposure to renewable energy and related sectors that facilitate energy transition and decarbonization. This approach aligns with broader trends in sustainable investing that emphasize practical, measurable outcomes rather than just labels, focusing on companies and projects that demonstrate clear, time-bound targets to reduce greenhouse gas emissions.
Ircantec shows a particular interest in local infrastructure projects within France, such as renewable energy installations and ecological transitions in sectors like rail transport. These projects could potentially benefit from carbon quota revenues directed towards ecological transitions in infrastructure, furthering France's energy transition objectives and local development.
While details about specific projects or the exact breakdown between different renewable energy technologies or infrastructure types in France are not provided, the strategy clearly targets:
- Renewable energy deployment - Local infrastructure enhancements supporting decarbonization - Transition assets that contribute to a low-carbon economy
Notably, Ircantec remains invested in Engie, despite the company not currently meeting minimum requirements, due to Engie's clear commitment to change. This demonstrates Ircantec's flexibility in its approach, acknowledging the importance of ongoing transformation in achieving its net-zero targets.
In line with its commitment, Ircantec has divested from several oil and gas firms, including TotalEnergies, Anglo American, BHP, BP, ENI, Equinor, Mitsubishi Corp, OMV, RWE, and Repsol. In 2024, Ircantec sold off eight more energy companies, divesting €48m.
As part of its expanded investment in the transition, Ircantec has also increased its green bond portfolio and created new funds dedicated to the energy transition. Most of Ircantec's energy transition investment is in listed markets, with total energy transition investment now close to 17% of overall assets.
Ircantec's journey towards sustainability began more than 15 years ago when it developed its responsible investment policies. In a bid to further strengthen its commitment, Ircantec signed the Paris Pledge in 2016 and implemented a more ambitious decarbonisation policy in 2021.
Recently, Ircantec announced the launch of two dedicated funds, the CPR Global Equity EET Fund and another fund managed by Nomura, focusing on the energy and ecological transition. In a further development, Ircantec has also plans to launch a new €250m energy transition infrastructure fund, with Eiffel selected as manager.
With these moves, Ircantec continues to demonstrate its leadership in sustainable investing, aligning its investment portfolio with the Paris Agreement and supporting France's energy transition objectives and local infrastructure development.
- Ircantec's new funds, such as the CPR Global Equity EET Fund and the one managed by Nomura, focus on the energy and ecological transition, expanding its investment in the vital sectors of the lower-carbon economy.
- Acknowledging the importance of transformation in achieving its net-zero targets, Ircantec remains invested in Engie, a company dedicated to change, demonstrating its flexibility in its approach.
- Beyond its green bond portfolio and other dedicated energy transition funds, Ircantec has allocated a significant portion of its assets towards real estate projects that promote environmental science and support climate-change mitigation efforts.
