Targeting environmental solutions that restore the global ecosystem
The opportunity
The functioning of the global economy relies on our natural capital. More than 50% of the world’s GDP – or 44 trillion USD – is either highly or moderately dependent on nature and its services.1 Yet, these ecosystems are under severe pressure, driven by population growth, rising incomes and urbanisation. It’s estimated, for example, that we consume our natural capital 1.75 times faster than Earth can regenerate it.2
We believe companies engaging in the restoration and preservation of the world’s ecosystems and natural capital through their products and services could offer attractive long-term growth potential and should remain well supported by public policy and investor preferences.
Fund highlights
TEAM
The fund primarily targets companies that seek to safeguard our aquatic, terrestrial, and urban ecosystems
The fund can invest across geographies, sectors, and market capitalisations, providing enhanced portfolio diversification and opportunity capture
The team’s co-heads have been working together for over 20 years across public and private markets. They have extensive fundamental, thematic, and quantitative investment experience.
Team and expertise
BNP Paribas Ecosystem Restoration is managed by Edward Lees, 28 years of industry experience, and Ulrik Fugmann, 23 years of industry experience. Together they head our Environmental Strategies Group in London, which includes portfolio managers, research analysts, quantitative analysts, and investment specialists.
The team benefits from access to our global trading and risk management platform, Sustainability Centre, Quantitative Research Group, and Macro Research team.
[1] Source: World Economic Forum, ‘Nature Risk Rising: Why the Crisis Engulfing Nature Matters for Business and the Economy’, 2020
[2] Global Footprint Network National Footprint Accounts, 2019
Past performance is not indicative of current or future performance. Performances is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance
objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
For a complete description and definition of risks, please consult the last available prospectus and KID of the fund. Investors considering subscribing to a fund should read carefully its most recent prospectus and KID that can be downloaded free of charge from our website: www.bnpparibas-am.com.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.