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

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Energy and resource efficiency

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Energy Decarbonisation

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Energy efficiency improvements

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Improving efficiency in non-energy resources

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Emission removal

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Financing low-carbon issuers or disinvestment from carbon assets

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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

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Invested amount

Fund amount: €63.77 million as at 29 January 2021

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Starting date of the project

2019

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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.

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Contact the company
carrying the project :

gmaresponsabilitesocialeentreprise@groupama.com

Groupama’s other projects :