Singlife Appoints Amundi to Manage Public Equities Portfolio, Benchmarked Against MSCI Low Carbon Indexes

Leading homegrown financial services company Singlife is pleased to announce the appointment of Amundi, one of Europe’s largest asset managers, to help execute the company’s low carbon transition strategy. Singlife will allocate 20% of its developed and emerging market public equities for Amundi to manage by the middle of 2025. This will be benchmarked against the low-carbon indexes of MSCI, a leading provider of critical decision support tools and services.

Singlife will progressively increase its allocation to low carbon indexes to decarbonise its portfolio. This is with the aim to meet Singlife’s Net Zero goals by 2050. The partnership with Amundi and MSCI will ensure a systematic reduction of Singlife’s climate transition risks, while still achieving target financial returns.

Singlife's public equity portfolio will track the performance of the MSCI Low Carbon Target Indexes, which aim to minimise portfolio exposure to carbon emissions related risks. By benchmarking against these indexes, Singlife can quantify how it contributes to global climate action as a financial services company.

“By partnering established, reputable players like Amundi and MSCI, we are creating a structured, trackable path for our decarbonisation journey. As one of the first insurers in Singapore to take this step, this commitment underscores our focus on accountability, transparency and a clear strategy for a sustainable future”, said Dr. Allen Kuo, Chief Investment Officer, Singlife.

With €2.2 trillion in assets under management[1], Amundi has a strong track record in responsible investing over the years. Amundi practises active stewardship by exercising its influence in engaging companies to improve their ESG practices. Singlife will tap on Amundi’s expertise to support its investees in their own transition efforts towards a more sustainable business.

“We are proud to accompany Singlife in the rollout of its low carbon transition strategy, leveraging Amundi’s first-class indexing capabilities. This partnership reflects our shared commitment to responsible investing. We look forward to working together to meet Singlife’s objectives, fostering resilience and promoting sustainable business practices across the portfolios”, said Albert Tse, Chief Executive Officer, Amundi, South Asia.

Singlife intends to reduce its carbon exposure in terms of carbon emissions and fossil fuel reserves. Tracking against the MSCI indexes safeguards Singlife’s fiduciary duty to its customers while minimising carbon exposure. The indexes exclude investments in controversial weapons, ESG controversies, thermal coal mining[2] and oil sands[3]. In addition, as Singlife uses climate data from MSCI, this allows greater alignment and consistencies in methodologies, standards and data integration.

"Through our comprehensive suite of sustainability-focused indexes, MSCI is dedicated to supporting our clients in measuring, reporting and acting on material climate risks,” said Shane Edwards, Head of APAC Client Coverage at MSCI. “The MSCI Low Carbon Target Indexes are designed to address carbon exposure by targeting both current emissions and fossil fuel reserves, which provide investors with a powerful tool to align portfolios with their sustainability objectives, helping them navigate the complexities of climate-focused investing with greater clarity and assurance.”

As a signatory of the United Nations-supported Principles for Responsible Investment (UN PRI), Singlife is dedicated to integrating sustainability across its business operations and investment strategies. Singlife was also the second insurer in Southeast Asia to be recognised as a signatory of the United Nations Principles for Sustainable Insurance (UN PSI). Recently, in July 2024, Singlife was recognised as a Champion of Good by the National Volunteer and Philanthropy Centre, Singapore, for its exemplary accomplishments in driving and multiplying environmental and societal impact. The appointment of Amundi and MSCI, both UN PRI signatories, is a significant milestone in Singlife’s ongoing commitment to responsible investing and its approach to achieving Net Zero 2050.

[1] As at 30 October 2024

[2] Revenue threshold of 1%

[3] Revenue threshold of 5%