Our ESG research is done for issuers, there is no differences between a company releasing a bond or an equity: we apply the same best in class approach with sector-specific ESG indicators.
Each GICS sector is reviewed annually on the same date. The purpose of the sector review is to benchmark all companies within a sector against a set of ESG indicators. These indicators are chosen by the sector analysts after in-depth research and analysis undertaken by the analyst and also based on an ample pool of sources.
For corporates, a one-to-one meeting or conference call is conducted with each company to doublecheck, verify and discuss findings and data. In many cases, discussions are followed by email exchanges.
There are 10 sector reviews a year ; well prior the review a meeting is set up with fund managers and financial analysts where the analyst presents an overview of the key ESG drivers that will be analysed - including the weighting breakdown between environmental, social and governance issues - in the coming sector review.
Once the analysis is completed, an ESG score and a ranking is given to each company of the sector in which BNPP IP invests or has an interest - icl. non-listed companies within the fixed income universe, large and medium caps,etc. The results are presented formally to fund managers and financial analysts.
The analyst monitor and follow the sector's ESG evolution and the companies's ESG behaviour during the entire year. When a company faces a relevant change and/or controversy the company is put under surveillance and a meeting is set up with the company following which, and the research done, the analyst will change or not the company's score, rating and inclusion in SRI funds.