The Quarterly Committee:
As mentioned in our Global Sustainability Strategy made public last March 2019, we are now reviewing our policies on a quarterly basis through a dedicate Sustainability Committee. The objectives are to:
- Define the roadmap for our ESG/Sustainability Strategy (incl. those on engagement)
- Support effective ESG integration across our strategies
- Sign off key BNPP AM Sustainability Policy positions
- Validate issuers' inclusion or removal from the "exclusion list" or "watch list"
- Define and monitor KPIs for Investments to assess progress toward Sustainability
We take the governance of sustainability seriously in the companies in which we invest, and hold ourselves to the same standard. Sustainable investing is at the core of what we do, and our Sustainability Committee, a component of our Investment Committee, chaired by our CEO, oversees our approach, policies, targets and reporting. Set up in 2018, this Committee is responsible for approving our Global Sustainability Strategy and related Policies. Our history in sustainability goes back to 2003 when we launched the first Sustainable bond fund, and 2006 when we signed the Principles for Responsible Investment. In 2012 we introduced our Responsible Investment Policy, thus introducing minimum standards in ALL our open ended funds and proposing them to clients in their mandates. In the wake of the Paris agreement in 2016, we launched our climate change strategy and in 2017 started working on what was to become the Global Sustainability Strategy (GSS) published on March 20th, 2019. The GSS states that 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. This document describes each element in detail, and how it will be implemented.
The first section of the GSS provides an overview of our investment approach, which reflects the Principles for Responsible Investment (PRI) and our belief that sustainable investment is simply good investment. As a major financial organisation, we are a firm believer in good governance, transparency and extensive reporting: both from the companies we invest in, and ourselves. We articulate our plans for further strengthening our investment approach, mapped against the PRI framework. We believe these efforts are integral to our ability to continue to deliver value to our clients.
The second section of the document presents our Sustainable Investment Roadmap (2019-2022), the path towards a low-carbon, more sustainable and equitable economic growth model. It is our belief that the current economic, social and environmental system is failing, and must be transformed in order for financial institutions to deliver sustainable returns. We are deeply attuned to the major systemic sustainability issues facing the world - climate change, resource scarcity, inequality - and committed to understanding not just how the associated risks and opportunities can impact our portfolios, but also how we as investors can help to shape the future, and minimise these risks over the long term. We explain how we believe we can make a difference through our investments, our ownership approach and by using our leverage as a financial institution. We have reflected this ambition in a number of priorities and targets, which will form the basis of our reporting.
We work closely with other parts of the BNP Paribas Group to align our approach and efforts. In particular, we liaise closely with the Group Head of Engagement, who sits on BNPP AM's Executive Committee and oversees the sustainability strategy across the BNP Paribas Group and the Group's CSR team in charge of developing and deploying BNPP's sectorial policies. We are a key contributor to their development. In addition to the Group's policies, BNPP AM has developed its own policies in certain areas.
BNPP AM has placed sustainability at the heart of the company's strategy and we have set ourselves ambitious goals in this area. With 25 ESG experts in its ranks (15 new hires in 2018-2019), the Sustainability Centre is fully committed to achieving our sustainable investment objectives