Encouraging and supporting companies in their transition process with G Fund Global Green Bonds
Launched in 2019, Groupama's G Fund Global Green Bonds fund finances environmentally significant projects that encourage and support issuers in their ecological and energy transition.
Main project's drivers for reducing the greenhouse gas (GHG) emissions
Energy and resource efficiency
Energy Decarbonisation
Energy efficiency improvements
Improving efficiency in non-energy resources
Emission removal
Financing low-carbon issuers or disinvestment from carbon assets
Reduction of other greenhouse gases emission
Project objectives
Promoting the financing of low-carbon projects by creating the G Fund Global Green Bonds
Groupama has introduced a bond investment solution that is consistent with ESG performance standards as well as long-term financial performance for client-investors.
The G Fund Global Green Bonds fund, which was awarded the GreenFin label in 2020, encourages and supports issuers in their energy and ecological transition (financing renewable energy projects, pollution control, clean transport, waste management, water conservation, etc.), while aiming to generate financial performance.
To achieve this, the management team conducts a detailed analysis of each issue by combining financial and non-financial criteria. The active allocation of the different performance drivers results in a diversified bond strategy.
In detail, the stock picking is based on the eligibility principles defined by Groupama Asset Management, applied to the characteristics of the security and the issuer. The internal research team analyses non-financial criteria relating to:
- Issuance, in terms of traceability and capital management, the project selection process and compliance with the Green Bond Principles
- The issuer, based on its ESG performance
- The environmental quality of projects by ensuring that the projects financed by the green bonds comply strictly with the nomenclature defined in the GreenFin label reference framework and that the green bonds do not finance activities that are prohibited by the label
- Transparency of the issuer and the projects
Groupama Asset Management’s proprietary analysis and these four selection pillars make it possible to include or exclude a certain number of securities and issuers within the world of investment.
The main investments are made in energy (34%), construction (16%), and transport (21%).
Emission scope(s)
on which the project has a significant impact
Scope 1
Direct emissions generated by the company's activity.
Scope 2
Indirect emissions associated with the company's electricity and heat consumption.
Scope 3
Emissions induced (upstream or downstream) by the company's activities, products and/or services in its value chain.
Emission Removal
Carbon sinks creation, (BECCS, CCU/S, …)
Avoided Emissions
Emissions avoided by the activities, products and/or services in charge of the project, or by the financing of emission reduction projects.
Scope 3 – Financing of low-carbon issuers
- Quantification : Carbon intensity (as of 29/01/2021): 353 tonnes of CO2/€M (scopes 1, 2, upstream 3)
As at 29/01/2021, the fund’s carbon intensity is 353 tonnes of CO2 /€M vs 471 tonnes of CO2 /€M for the Barclays MSCI Global Green Bond Index (covering 77% of assets).
Carbon intensity is the average greenhouse gas emissions (scopes 1, 2 and upstream 3), reported per million euros of turnover for companies and reported in terms of GDP for countries.
Key points
Invested amount
Fund amount: €63.77 million as at 29 January 2021
Starting date of the project
2019
Project localisation
OECD countries
Project maturity level
Prototype laboratory test (TRL 7)
Real life testing (TRL 7-8)
Pre-commercial prototype (TRL 9)
Small-scale implementation
Medium to large scale implementation
Economic profitability of the project (ROI)
Short term (0-3 years)
Middle term (4-10 years)
Long term (> 10 years)
Illustrations of the project
Projects financed by G Fund Global Green Bonds must be related to alternative forms of energy, green buildings, energy efficiency, the circular economy, sustainable transport, agriculture and forestry or adaptation.
For example, the fund contributes to SDG 6 (Clean Water and Sanitation), SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation and Infrastructure), SDG 11 (Sustainable Cities and Communities), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action), SDG 15 (Life on Land). The allocation of the fund according to its contribution to the SDGs is updated with each monthly fund reporting exercise.
Contact the company
carrying the project :
gmaresponsabilitesocialeentreprise@groupama.com
