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Amundi will pay managers based on ESG returns

Amundi supported 88% of shareholder resolutions related to executive compensation and 76% of shareholder resolutions that supported human, health and social rights. It also voted against manager compensation plans that did not contain ESG indicators. On February 15th, 2021, Yves Perrier sent a letter to 500 CEOs of internationally listed companies, highlighting these two priority themes.

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Amundi presented the results of its voting and engagement policy and outlined the actions that will be implemented in 2021. During the 2020 campaign, Amundi participated in nearly 4,250 shareholder meetings of European and international companies, a 19% increase over 2019, and focused its ongoing dialogue with companies and its voting policy on two major themes: the fight against climate change and social inequality.

Amundi increased its support for shareholder resolutions calling for greater transparency and information on companies’ ESG and climate strategy, in particular voting on 86% of resolutions calling for better integration of climate objectives. At the same time, the group engaged in discussions on energy transition and climate change with 472 companies, and on ecosystem protection with 378 companies.

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Amundi voted against manager compensation plans that did not include ESG indicators

Amundi supported 88% of shareholder resolutions related to executive compensation and 76% of shareholder resolutions that supported human, health and social rights. It also voted against manager compensation plans that did not contain ESG indicators, reporting 31% negative votes on this issue. It has also been particularly vigilant regarding the amount of dividends distributed, particularly for companies that have benefited from state aid. At the same time, it initiated a dialogue with 447 companies on direct and indirect protection of workers and human rights. In 2021, in view of the Glasgow Climate Change Conference, Amundi’s two priority themes will continue to be energy transition and social cohesion.

Accordingly, in addition to the necessary measurement of the carbon emission trajectories of the companies in which it invests, Amundi will support resolutions calling for greater transparency on emission reduction strategies, associated with specific targets. Similarly, Amundi would like to see an increasing number of companies commit to reducing their emissions in line with science-based targets: the adoption of targets under the Science Based Target (SBTi) initiative will therefore be one of Amundi’s main themes of engagement in 2021.

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Regarding managers’ remuneration, Amundi will ensure that it is in line with the company’s performance, at an acceptable level compared to market benchmarks, and that it fully integrates specific ESG objectives, including the annual portion of variable remuneration. With regard to dividends, Amundi will pay particular attention to ensuring that the distribution policy does not compromise the company’s long-term investment capacity, weaken its financial strength or lead to unfavorable value-added distribution to employees.

“As an asset manager, Amundi has a duty to provide its investor clients with high and consistent returns over the long term, along with a positive contribution to key social issues and stable economies. This responsibility has been particularly accentuated in the context of the social crisis resulting from the pandemic, at a time when the energy transition is proceeding slowly five years after the adoption of the Paris Agreement,” explained Jean-Jacques Barbéris, head of institutional and corporate clients division & ESG at Amundi.

“Amundi has been a pioneer in responsible investing since 2010, and in 2018 we have reached a new stage in our responsibility to society with a three-year plan that systematically includes ESG performance in our dialogue as shareholders with issuers and in our voting choices at shareholder meetings,” added Yves Perrier, CEOof Amundi. “This strategy is applied in three complementary ways: ongoing dialogue with companies, consideration of ESG criteria in investment decisions, and a voting policy that incorporates these criteria.” 

On February 15th, 2021, Yves Perrier sent a letter to 500 CEOs and chairmen of internationally listed companies, highlighting these two priority themes that will guide Amundi’s voting policy in 2021.

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First published in ADVISORonline.it, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Daphne Freeman has worked in the crowdfunding and impact investing industry for the past few years, gaining experience in marketing, and connecting businesses and entrepreneurs in need with the right investors. As a seasoned grant writer as well as financial market journalist, she is passionate about making a social impact in the world. A free spirit, Daphne also enjoys writing and exploring topics of interest, currently CBD, health and beauty, and social media influencers.