BNPP AM has reaffirmed its commitment to apply its ESG Integration Guidelines to each strategy in the BNP Paribas Funds range, affecting all stages of the investment process, including investment philosophy, research and ideas generation, portfolio construction, risk mangaement, engagement, voting, disclosure and reporting.
The implementation will be overseen by an ESG Validation Committee, responsible for approving each investment team's proposed integration methodology. For example, multi-factor funds must have ESG scores that are 20% higher than their respective benchmark indices and target a carbon footprint 50% lower than that of their benchmark. Additionally, funds are required to comply with the BNPP AM Responsible Business Conduct policy, reflecting principles of the United Nations Global Compact.
Noting the SRI Best in Class, Multi-factor, Thematic and Impact investing strategies within the BNP Paribas Funds range, the manager stated the goal of addressing three priority themes under the banner of the '3Es': Energy transition, Environmental protection and Equality & inclusive growth.
Pierre Moulin, executive committee member and global head of Products & Strategic Marketing at BNP Paribas Asset Management, said: "We are convinced that investing for a sustainable future is in the best long term financial interests of our clients, as well as of the global economy. This must be reflected in our investment approach and in our products, as we have a responsibility to provide our clients with investment solutions that can generate value and better risk-adjusted returns over the long term. With our fully transformed and 100% sustainable BNP Paribas Funds range, we are contributing to building a sustainable world."