BNP Paribas Securities Services has an important role to play in helping its clients adopt and integrate ESG policies and demonstrate the value these can bring to an organisation. By signing to the PRI in the “service provider category”, BNP Paribas Securities Services is committed to providing, developing and promoting services that support clients’ implementation of the PRI’s six Principles. The bank fully supports responsible investments and commits in reinforcing risk management among its clients. This represents the primary challenge of our long-term strategy. For example through our “ESGRA” (ESG Risk Analytics) solution we support our Institutional Investors’ client objectives to have an independent and quantitative assessment of ESG scoring across their investees companies, through a dynamic portal to allow more informed investment decision-making. Our bank wide connectivity can also enhance our clients’ sustainable analysis and investments, implement more efficient indices, allocate to “green” investments to improve risk return and properly meet their long term objectives. Within our ESGRA platform, we integrate external data providers to source the raw ESG data, ESG ratings & underlying datasets (for example to support carbon footprint). All the services that we offer are built on our best of breed risk & performance platforms, and serviced globally by our risk & performance specialists.
Another example is the already established development of our Planetshares solution (including “Votaccess” platform) that enable our customers to engage actively in shareholder meetings of the companies they invest in, allowing them to express their views on the incorporation of ESG issues into ownership policies and practices. We are convinced that we can have considerable influence over how our clients address ESG issues. In this respect, in order to better inform our customers, we regularly publish thought leadership papers and articles.
As part of our fiduciary duty and at the request of our Asset Owners clients, we perform specific ESG investment compliance controls on externally managed portfolios (negative/exclusionary screening for specific securities, sectors, countries or positives screening based on ESG criteria or indices). Acting as a depository for those institutional funds, we run compliance checks after each NAV publication.
We are supporting clients in aligning their securities lending programmes with Environmental, Social and corporate Governance (ESG) criteria, integrating ESG principles into the counterparty selection process and ensuring corporate engagement and shareholder actions are in line with our clients’ ESG policies.
End 2018, we have launched "ClimateSeed", the first Social Business of BNP Paribas. ClimateSeed was developed with the support of Grameen Creative Lab, co-founded by Nobel Peace Prize laureate Professor Yunus. In line with Social Business principles, it reinvests all its profits in its development to maximise its positive impact on society and the environment. ClimateSeed is the climate-action partner to help organisations go beyond CO2 reduction. It launched several tools, including a voluntary carbon offsetting platform to connect organisations with tangible projects to cut carbon emissions. The ClimateSeed platform connects businesses looking to offset their unavoidable carbon emissions and contribute to the UN SDGs with project developers offering voluntary carbon credits and looking for funding.The launch of ClimateSeed is part of the commitment BNP Paribas has made to encourage decarbonisation and carbon neutrality. As well as supporting climate action, voluntary carbon offsetting projects often help bring more prosperity and social inclusion in local communities. ClimateSeed aims to increase the transparency, security and efficiency of the voluntary carbon market through a thorough verification process, that is built on simple, secure, and user-friendly digital platform and tools. For that purpose, ClimateSeed performs a three-level verification process on each project promoted on its platform including certification checks by a renowned International Standards, banking due diligence on the project developer and project analysis from a Sustainability Committee. ClimateSeed offers more than 30 carbon reduction projects including reforestation, forest conservation, energy efficiency, renewables, household devices, water and waste management in more than 20 countries. It combines the operational strength of a top tier bank, the agility of a startup ,and the legitimacy of a Social Business.