AG2R La Mondiale was formed in 2008 by merging two financial services groups, AG2R – provider of workplace pensions and insurance – and La Mondiale, the third pillar pensions specialist. The group has set itself the objective of reconciling economic performance and societal commitment by supporting companies and public entities contributing to sustainable development. It has therefore extended a responsible investment approach to all asset classes and investment strategies, covering 100% of the group’s assets under management.

La Mondiale runs a sustainable bond subscription programme on a scale demonstrating its commitment to accelerating the sustainable transformation of the real economy. In market value terms, this component of the bond portfolio had risen from €1.25bn in 2017 to €5.5bn at the end of June 2023, a 4.4-fold increase over the period. Its 160 issuers are based in countries from France to Peru. They span companies, governments, and local authorities such as those in the group’s main employment areas of Paris, northern France and Provence.

The social bond allocation is growing within the programme, forming 19% of sustainable bond purchases over the past 18 months. In 2022, AG2R La Mondiale invested €50m in a seven-year social inclusion bond issued by the Council of Europe Development Bank to respond to the social crisis caused by the Ukraine war, and €40m with the Paris region’s transport operator, Île-de-France Mobilités, to finance the purchase of transport equipment.

To help strengthen the economy and jobs market, AG2R La Mondiale has added a business financing component to its investment policy, supporting companies towards sustainable development. This operates via the subscription and support of loans worth €680m in 50 funds. This year, for example, it lent €15m to a large wholesale company on condition of biodiversity, water and/or carbon targets being achieved by 2025. Reaching its targets will give the company a discount on the coupon paid of up to 25bps.