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TOBAM extends systematic carbon footprint reduction to fixed income portfolios

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Paris-based quantitative asset manager TOBAM has adopted a carbon footprint reduction policy across its Anti-Benchmark Credit strategies.

This systematic carbon footprint reduction of at least 20 per cent versus the reference benchmark’s carbon footprint is now being applied to fixed income portfolios.  The announcement comes after TOBAM had previously introduced a carbon footprint reduction policy across its equity portfolios in June 2018, showcasing TOBAM’s commitment to sustainability.

TOBAM’s quantitative approach allows them to adopt sustainable initiatives at the portfolio level, without compromising the portfolio’s diversification characteristics.

The move is set to further cement the environmental, social and governance commitments taken by TOBAM since 2007, when TOBAM first introduced the adoption of an exclusion policy of companies with unacceptable ESG practices.

Yves Choueifaty, Founder and CEO of TOBAM, says: “In line with our mission of providing rational and professional solutions to long term investors in the context of efficient markets, TOBAM has had a longstanding commitment to upholding Environmental, Social, and Governance issues.

“The systematic implementation of the carbon footprint reduction to all our equity and fixed income strategies is consistent with our investment beliefs of long-term investing and integration of ESG across the board rather than having a dedicated sustainable and responsible funds range. We consider sustainability a core value”.

Christophe Roehri, Deputy CEO, adds: “Our first initiative to implement a systematic carbon footprint reduction across our equities strategies received genuine enthusiasm across our network. This alignment between our investment process and our values is particularly relevant in a context where investors around the world are not only looking for sustainable approaches but are now also looking to measure the actual impact of these approaches.”

This development is the latest in a series of sustainability initiatives carried out by TOBAM over the past few years, including the development of a proprietary exclusion policy and the extension of an engagement policy that covers not only excluded companies, but also targeted companies held in their portfolios on identified E, S or G challenges.

Furthermore, to remain aligned and consistent with its values, TOBAM has also in place a responsible policy at the firm level. Among initiatives in favour of ESG, TOBAM has been offsetting 150 per cent of its annual corporate carbon footprint since 2011, by subsiding green and reforestation projects.

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