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BNP Paribas Asset Management

PRI reporting framework 2017

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You are in Indirect – Manager Selection, Appointment and Monitoring » Outputs and outcomes

Outputs and outcomes

SAM 11. Percentage of externally managed assets managed by PRI signatories

11.1. Indicate approximately what percentage (+/- 5%) of your externally managed assets are managed by PRI signatories.

88 %

11.2. Describe how you ensure that best RI practice is applied to managing your assets

Measures

          by means of the ESG questionnaire and assessment
        

11.3. Additional information. [Optional]

The percentage provided on SAM 12.1 (88%) is based on the number of overall external management companies that FQA recommend as at 31/12/2016. As a comparison, this percentage was 80% as at 31/12/2015.


SAM 12. Examples of ESG issues in selection, appointment and monitoring processes

12.1. Provide examples of how ESG issues have been addressed in the manager selection, appointment and/or monitoring process for your organisation during the reporting year.

Topic or issue
          Topic or issue	
Exclusion lists and communication of BNPP IP responsible investment policy
        
Conducted by
Asset class
Scope and process

For funds delegated to external managers, communication of list of companies to be avoided in portfolios under BNPP IP responsible investment policy

Outcomes

External managers acknowledgment and implementation of exclusion list in their compliance systems

12.2. Additional information.

In 2014, FQA launched rankings for asset management companies and external funds based on non-financial ESG criteria, in addition to our recommendations based on quantitative, financial and risk analysis. FQA applies a similar, consistent and systematic approach across all asset classes at both company and fund level, in order to ensure the ESG rankings we allocate are reliable and comparable.

 

This ESG evaluation is based on a proprietary ESG questionnaire, updated at least every 2 years. All FQA qualitative analysts collect specific information directly through the selected managers to develop a better understanding of their SRI practices. This questionnaire seeks to identify the extent to which ESG criteria are employed broadly within their processes and overall product range and in a fund / strategy in particular.

 

The ESG evaluation of an asset management company is carried out in particular with regards to its commitment / overall ESG framework to responsible investment initiatives (including PRI), its investment policy vis-à-vis UN Global Principles and BNP IP controversial activities, or any investments restrictions policies based on normative or controversial or non-ethical or any other ESG criteria. The concrete implementation of the ESG investment beliefs and practices of an asset management company also includes the analysis of its ESG type of approach, its ESG internal resources and use of external ESG research, its proxy voting policy and engagement process, its level and quality of communication about their ESG and SRI investment practices etc...

Similar criteria mentioned above are also evaluated at a fund /strategy level through the implementation of the specific SRI policies and ESG criteria applied to this fund/strategy, the integration process of ESG criteria into investment decisions, the involvement of the management team in ESG issues and extra-financial research interactions, the transparency and quality of financial and extra-financial reporting, as well as the concrete application of its voting rights etc…

With those ESG scores defined for each asset management company and external fund recommended, FQA is able to provide to its clients a strong qualitative assessment of the ESG footprint on their external managers upon demand.


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