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BNP Paribas Asset Management takes part in third annual One Planet Sovereign Wealth Funds Summit

Corporate News

BNP Paribas Asset Management
 

The third annual One Planet Sovereign Wealth Funds Summit took place on Friday 20th of November, in the presence of President Macron. This growing initiative, which aims to accelerate the transition to more sustainable financial markets and to a low carbon economy as well as ensuring full alignment with the Paris Agreement, has gathered 33 CEOs of Sovereign Wealth Funds, Asset Managers and Private Equity Firms.

This was an opportunity to discuss the activities and milestones around the strengthening of responsible investment policies, increased corporate engagement on climate-related financial disclosures, and new investments in renewable energy and climate solutions. A statement of support was developed collectively to drive the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations as a global reporting standard.

At BNP Paribas Asset Management, we welcome the growth of the One Planet Summit Initiative and remain more than ever committed to the goals and principles of the initiative. In 2020, we have continued to reinforce our commitment to generating long-term sustainable investment returns to our clients. We are convinced, that investing in sustainability, integrating ESG criteria across the entire investment process and engaging pro-actively with companies is the way forward to creating value for clients also benefiting the economy as a whole.

In line with the initiative’s three principles, here are a few of our key achievements this year include:

Enhanced investment policies & processes to further align with the goals of the OPSWF and the Paris Agreement by committing to aligning its portfolios with the Paris Agreement and implementing a significantly tighter exclusion policy on companies engaged in (i) the mining of thermal coal and (ii) the generation of electricity from coal.  

  • In particular, we are continually expanding our range of low-carbon and sustainability themed investment funds to accelerate the transition: BNPP AM’s ‘Sustainable +’ range of funds represents >16% of total AUM, making BNPP AM the largest sustainability themed asset manager in Europe.

Encourage greater accountability and action on material climate change issues in corporate governance, business strategy and planning, risk management and public reporting to promote value creation; also in line with the TCFD.

  • In 2020, BNP Paribas Asset Management supported more than 90% of climate related shareholder resolutions.
  • In 2018 BNPP AM collaborated with Church of England and AP7 pension funds to publish investor views and expectations on corporate climate lobbying in Europe. This document sets out the foundations for a series of shareholder proposals and corporate engagements. To date, investors have reached agreements with 16 European companies including Total and Repsol, for which BNPP AM has played a key role in reaching this goal.
  • Similarly, in the US, BNPP AM filed four shareholder resolutions in the 2020 AGM, which gained extraordinary support, including a historical 53.5% backing to its climate lobbying resolution at Chevron’s AGM.
  • Within the Climate Action 100 + initiative lead with IICGG, BNPP AM is lead or co-lead of the engagements with seven companies on their climate related strategies, including Repsol and Total resulting in both companies committing to adopting more ambitious climate targets.

Actively contribute to the global financial system in allocating capital to companies and projects by increasingly integrating climate change related risks and opportunities into investment management through the development of new tools, analytics and investment vehicles.

  • As part of its Global Sustainability Strategy, BNP Paribas Asset Management has committed to adopt a sustainable investment approach for the full range its investment strategies.
  • As of end of September, the scope of assets that had integrated ESG was €305 billion, that is approximately 70% of BNPP AM’s total AUM.
  • In October, BNPP AM has started reporting the ESG score and carbon footprint of open-ended funds and associated benchmarks. BNPP AM has identified more than 130 ESG Champions across Investments and Sales, who each undertake formal training and certification on ESG and deepen BNPP AM’s capacity beyond its 25-person strong Sustainability Centre.

BNPP AM welcomes the new members who have joined the One Planet Summit initiative and is particularly pleased with the integration of several sovereign wealth funds, thus joining forces with players in asset management and private equity to accelerate the transition to a low-carbon economy.

Read the joint press release

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