BNP Paribas Asset Management (BNPP AM) has transformed its flagship fund range to become fully sustainable in accordance with strict new criteria.
Each strategy within the BNP Paribas Funds range now applies the firm’s environmental, social and governance (ESG) guidelines, reflected across the stages of each investment process and overseen by an ESG valuation committee.
Multi-factor funds, for example, 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.
“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,” said Pierre Moulin, executive committee member and global head of products & strategic marketing at the French firm.
According to Moulin, this must be reflected in BNPP AM’s investment approach and products. “We have a responsibility to provide our clients with investment solutions that can generate value and better risk-adjusted returns over the long term,” he said.
The ESG integration approach is adapted for each fund according to the specific characteristics of its asset class, investment process and geographical area, BNPP AM said.
The BNP Paribas Funds range includes SRI Best in Class, Multi-factor, Thematic and Impact investing funds. By the end of the year it will include 105 sub-funds.
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