France-based BNP Paribas Securities Services has launched environmental, social and governance (ESG) Risk Analytics, allowing these factors to be embedded more easily into clients’ investment choices.
Patrick Colle, general manager of BNP Paribas Securities Services told Funds Europe that the move was due to client demand. The firm also said that with a growing awareness of a broader range of investment risks, ESG Risk Analytics gives a breakdown of how well clients’ investments and benchmarks rate against a wide range of ESG factors.
These factors include carbon emissions and energy usage, human rights and community relations as well as corporate governance factors such as board diversity and shareholder rights.
ESG Risk Analytics evaluates up to 750 ESG data points for each company in its database. This data is then used to analyse clients’ portfolios, providing an overall ESG score, which can be compared to other portfolios and benchmarks.
“With this new solution, we aim to help institutional investors overcome obstacles and incorporate ESG into their everyday investment decisions,” said Colle.
BNP Paribas Securities Services has $9 trillion (€8 trillion) in assets under custody.
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