BNP Paribas Asset Management has transformed its entire active funds range to become 100 per cent sustainable, the firm has announced.
The asset manager, one of the pioneers in sustainable investment practices, said the integration of ESG criteria into all its investment strategies is a significant milestone in the implementation of its global sustainability strategy.
The company, which currently has nearly EUR 10bn of assets under management (AUM), added that its funds range will include 105 sub-funds by the end of 2019, with AUM increasing substantially to EUR 52bn.
The range will include 16 ‘blockbuster’ funds, each with AUM of more than EUR 1bn, according to the company.
Each strategy within the BNPP Funds range now applies the firm’s ESG integration guidelines, which are adapted for each fund according to the specific characteristics of its asset class, investment process and geographical area.
The guidelines include requirements for multi-factor funds to have ESG scores 20% higher than their respective benchmark indices and target a carbon footprint 50 per cent lower than their benchmark.
All funds also comply with the firm’s Responsible Business Conduct policy, which reflect the principles of the United Nations Global Compact and BNPP AM’s sectoral policies.
The BNPP Funds range includes socially responsible investing (SRI) best in class, multi-factor, thematic and impact investing funds.
“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,” Pierre Moulin, global head of products and strategic marketing at BNPP Asset Management, said.
“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,” Moulin commented.
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