In a fast changing world, our focus is on achieving long-term sustainable investment returns for our clients. In line with this, BNP Paribas Asset Management (“BNPP AM”) is committed to integrating sustainable investment practices across its strategies. We believe this is in the financial interest of our clients, and of the economy at large. This commitment incorporates two key components:
First, our full range of investment strategies will adopt a sustainable investment approach. This means that they will integrate the key elements of sustainable investment: comprehensive research and integration of environmental, social and governance (ESG) factors; investor stewardship; responsible business conduct and product-based exclusions; and a focus on three thematic areas to promote a sustainable future.
In 2019 we launched our Global Sustainability Strategy. We committed to integrating sustainable investment practices across our investments.
Our “Global Sustainability Strategy” details our approach to sustainable investment, setting clear objectives and commitments, and focussing on three key sustainability themes: energy transition, the environment and equality and inclusive growth (the ‘3Es’).
It reinforces our commitment to invest for the long term, and to engage with companies and regulators to promote best practice, as well as raise awareness about the role that finance can play in achieving a sustainable world.
For BNP Paribas Asset Management, sustainable investment includes four pillars (1.ESG Integration, 2.Stewardship, 3.Responsible Business Conduct and 4.Forward looking perspective). Together, these approaches strengthen the way we invest, including how we generate investment ideas, construct optimal portfolios, control for risk and use our influence with companies and markets.
Below some details on the four pillars:
1. ESG integration:
In order to enhance investment decision making by assessing the environmental, social and governance (ESG) risks and opportunities of each investment
Because we believe that meaningful engagement with issuers (including voting) can enable us to further understand and manage ESG risks on behalf of our clients, while public policy engagement aims at promoting a regulatory framework that enables the development of a low-carbon and inclusive economy, including the pricing of externalities and high quality corporate reporting.
3. Responsible business conduct policies and product-based exclusions:
In order to avoid reputational, regulatory and stranded asset risk, we exclude those companies deemed in violation of the UN Global Compact Principles or the OECD Guidelines for Multinational Enterprises and have put in place a series of sector policies that set out the conditions for investing in some specific sectors and guide our screening requirements and engagement.
4.Forward-looking perspective – the ‘3Es’ (Energy transition, Environmental sustainability, Equality & Inclusive growth):
The 3Es: are used to enhance our investment decision-making and guide our stewardship efforts, as we believe the energy transition, environmental sustainability and equality are necessary conditions to a healthy economic future. Requirements and engagement.
“If we are to successfully address the challenges of today – and secure a prosperous and sustainable economy for tomorrow – long-term investors must rise to the occasion as ‘future makers’, using the leverage that our investments and our voice bring to positively influence the world around us. We relish this opportunity and look forward to partnering with our clients and financial sector peers to achieve what should be a joint aim: a sustainable future.”
JANE AMBACHTSHEER - Global Head of Sustainability