Sustainability Report 2024

A broader perspective for sustainable returns

In a fast-changing world, our broader perspective is intended to ensure sustainable long-term outcomes for our clients’ investments. Over the past year, we have made significant progress towards this goal. This report is a testament to those collective achievements.

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Investing sustainably

We put sustainability at the heart of the management of our products and focus our efforts on providing clients with a range of investment solutions across the sustainability spectrum to meet their diverse needs.

€392bn

Assets under management integrating ESG1 criteria

€321bn

Assets classified as SFDR2 Article 8 or 93

+250 products

subject to ESMA naming guidelines

Energy transition, healthy Ecosystems, Equality

We believe the optimal economic model can be built on a successful Energy transition, healthy Ecosystems, and greater Equality in our societies – our 3Es. Taken together, these form a pathway to economic sustainability that will enable us, as investors, to safeguard long-term returns.

53.5%

Net Zero Achieving, Aligned or Aligning in 2024 vs a target of 60% in 2030

€700M

in biodiversity-related investments

€71M

invested in social impact bonds

Voting and engagement

As long-term investors, we combine voting, issuer engagement and policy advocacy to influence companies and governments around the world to help shape sustainable and equitable economies. Promoting good ESG standards across all types of issuers and holdings is essential both to upholding our ownership responsibilities and protecting and enhancing our clients’ interests.

36%

opposition rate to management proposals

2,240

oppositions to company resolutions at 352 companies4

371

issuers engaged through 839 interactions

Walking the talk

Walking the talk is critical to achieving excellence. As a sustainable asset manager, our corporate practices and disclosures should match or exceed the standards we expect from the entities in which we invest.

3,903

hours volunteered by our employees

787

participants in environmentally-themed workshops (fresques) since 2019

2.1 tCO2e

operational GHG emissions per employee versus our 2025 target of 1.85

Sustainability Report 2024

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BNPP AM is the source for all data, as at 31/12/2024.
[1] Environmental, Social and Governance. ESG assessments are based on BNPP AM’s proprietary methodology which integrates all three aspects of E, S & G.
[2] Sustainable Finance Disclosure Regulation
[3] Article 8 funds: promoting environmental and/or social characteristics / Article 9 funds: having a sustainable investment objective.
[4] Based on our environmental and social expectations.

Important information

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here 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 hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. 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 outlay. Past performance is no guarantee for future returns. 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). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.

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.