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Bluntly stated, flying is too cheap. Air travellers do not yet pay for the cost of their emissions.


Airplane journeys should be discouraged where an alternative exists.


Logic demands that we analyse whether investments in rail net- works and other alternatives should partially replace air traffic. More fundamentally, the underlying societal purpose of airlines needs to be re-examined. The environmental cost must be correctly priced into airlines. We – governments, travellers and investors – must give aviation a


re-think. Investors have a responsibility to ensure that through their capital allocation decisions, this finite CO₂ budget is spent to maximise investor return and the return for all stakeholders. Gov- ernments and citizens must play their part. Governments must create incentives and channel public funds towards low-carbon transportation infrastructure. They can make it easier for citizens to understand the impact of their travel decisions and help citizens adapt their consumption decisions accordingly. Low-carbon lei- sure and travel solutions are already available and will benefit from this shift in behaviour.


Airline CO2


emissions continue to rise despite efficiency and cleaner fuels 200 150 100 50 0 -50 -100 -150 2020 2025 Air traffic growth (lhs) 2030 2035 Engine annual efficiency (lhs) 2040 2045 Biofuel annual growth (lhs) CO2 2050 emissions (rhs) Source: Candriam


At Candriam, we believe in active ownership, and active engagement. We engage not only with investee companies, but with employee groups and unions, governments and other stakeholders. How we choose to invest determines our financial future, and our environment.


40.000 30.000 20.000 10.000 0 -10.000 -20.000 -30.000


Disclaimer


This document is provided for information purposes only, it does not constitute an offer to buy or sell financial instruments, nor does it represent an investment recommen- dation or confirm any kind of transaction, except where expressly agreed. Although Candriam selects carefully the data and sources within this document, errors or omissi- ons cannot be excluded a priori. Candriam cannot be held liable for any direct or indirect losses as a result of the use of this document. The intellectual property rights of Candriam must be respected at all times, contents of this document may not be reproduced without prior written approval.


May 2020 portfolio institutional roundtable: ESG 17


Percentage growth in CO2 emissions since 2019


CO2


eq Emissions in million tons


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