Moving forward in the era of sustainable transformation

As the sustainable asset manager for a changing worldwe believe we have an important role to play as we strive to generate long-term sustainable investment returns for our clients.

Our purpose, strategy and culture are deeply focused on integrating the six pillars of our sustainable investing approach (Appendix 1) into everything we do.

Here we highlight some of the key achievements detailed in the full report.

ESG integration in all investments

We have integrated ESG into our investment processes using our ESG integration guidelines and expanded our proprietary ESG research from 3,000 entities to more than 13,000. Thanks to a comprehensive validation system, we now manage 330.5 billion euros of integrated ESG assets.

We worked with index providers to move 18 existing exchange-traded funds (ETFs) to ESG-aligned and Paris-aligned benchmarks to strengthen the sustainability features of our flagship BNP Paribas Easy index strategy. Thus, 83% of the range of the BNPP AM index, i.e. 16.4 billion euros in assets under management (AUM), are now classified as Article 8 or Article 9 under the SFDR (Sustainable Finance Disclosure) regulations. Regulation).

Stewardship (voting, engagement)

Using proxy voting and governance principles, we voted against management proposals approximately 33% of the time in 2021.

We supported nearly 90% of climate-related shareholder resolutions in the last voting period.

We have strengthened our opposition to the appointment of directors, mainly on diversity issues

Responsible Business Conduct

We have established our Responsible Business Conduct Policy, which governs our opt-out lists, the standard for all new client mandatesand encouraged existing customers to adopt our policy.

We have strengthened our policy to systematically exclude all utilities that will still have coal capacity in their power generation mix in EU and OECD countries by 2030 and in the rest of the world from 2040.

We have introduced exclusions and mandatory criteria for companies that are significantly involved in the exploration, production, and trading or pipeline distribution of shale oil or gas, tar sands, and oil and gas resources in the arctic region.

We updated our agriculture sector policy to tighten restrictions on deforestation and land clearing in Brazil’s Amazon and Cerrado regions, two of the most biodiverse regions on the planet.

The ‘3 E’s

Energetic transition

In 2021, we reinforced our commitment to align our investment portfolios with the objectives of the Paris Agreement by registering for the Net Zero Asset Managers Initiative (NZAM).

Energy transition is thoroughly integrated into investments through our ESG rating framework, and our exclusion policy covers the most sensitive sectors related to climate change.

We use our influence to encourage companies, countries and policymakers to align with the Paris goals. We supported numerous climate-related shareholder resolutions during the last voting period and we are engaging with businesses on the energy transition both individually and collaboratively through coalitions such as Climate Action 100+.

Environmental sustainability

In 2021, we published our Biodiversity Roadmap, which details our plan to integrate biodiversity considerations into our sustainable investing approach.

Our proxy voting, engagement, and public policy support our expectations for environmental sustainability with a focus on deforestation and water efficiency. In 2021 we signed the corporate statement for a Global Treaty on Plastic Pollution, which governments around the world have endorsed.

Equality and Inclusive Growth

We have increased our opposition to the appointment of directors from 20% in 2018 to 37% in 2021. We have engaged in initiatives raising concerns about worsening inequalities during the Covid-19 crisis.

We have developed a data model to embed an inclusive growth assessment into our investment strategies. Our inclusive growth strategy focuses on investing in companies that proactively reduce inequality.

Durable+: Reinforced ESG – theme, impact

Our focus on products that go deeper – that is, have enhanced ESG characteristics, whether thematic or impact – has resulted in 229 billion euros in total assets under management be classified as SFDR Article 8 and Article 9

This includes 81% of our open funds.

Corporate Social Responsibility (CSR) – Speak to the word

We have implemented a social responsibility approach with ambitious objectives to a more gender-balanced company, encouraging employees to volunteer, reducing our emissions and waste.

We tackled sustainability training and employee engagement and linked sustainability more closely to employee compensation.


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Disclaimer

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience.

All opinions expressed herein are those of the author as of the date of publication, are based on available information and are subject to change without notice. Individual portfolio management teams may have different views and make different investment decisions for different clients. The opinions expressed in this podcast do not constitute investment advice.

The value of investments and the income from them can go down as well as up and investors may not get back their initial investment. Past performance does not guarantee future returns.

Investing in emerging markets, or in specialized or restricted sectors is likely to be subject to above average volatility due to a high degree of concentration, greater uncertainty as less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).

Some emerging markets offer less security than the majority of developed international markets. For this reason, portfolio transaction, liquidation and custody services on behalf of funds investing in emerging markets may involve greater risk.

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