Lyxor Asset Management, part of the French banking group Societe Generale, has announced plans to divest from the coal sector as part of its new climate policy.
This includes companies that produce over 10% of their turnover from coal mining or derive over 30% of their electricity production from coal.
The move aligns with its parent Societe Generale’s strategy of divesting from coal. Societe Generale intends to withdraw from this sector in the EU by 2030 and for the rest of the globe by 2040.
The withdrawal from coal is one of the pillars of Lyxor’s new climate policy, which has four pillars in total.
Among other pillars of the climate policy include plans to introduce ESG-focussed offerings like the Green Bond ETF.
Moreover, the firm has now developed a methodology to reference measurable indicators on the risks and opportunities related to climate change in portfolios.
Lyxor will also enforce a voting policy that will enable the firm to make objections at general meetings to votes on resolutions in case of environmental controversies.
Lyxor head of SRI, Florent Deixonne, said: “With its Climate Policy, Lyxor has created an ambitious framework to support the climate transition.
“I am convinced that by focusing on the four pillars of constructive dialogue with issuers, innovative investment solution design, exclusionary policies and portfolios’ climate indicators, we are equipping ourselves to put investment at the service of the transition to a low-carbon world.”