Considering environmental, social and governance (ESG) factors in investment decisions for our open-ended funds is an integral part of our approach to responsible investment.
Implementing ESG criteria in our investments
BNP Paribas Asset Management has adopted ESG standards for its investments in corporate issuers based on the 10 principles of the United Nations Global Compact. This framework is recognised around the world and applies all industry sectors, based on the international conventions in the areas of human rights, labour standards, environmental stewardship and anti-corruption.
In parallel, we continue the development of specific ESG requirements for controversial sectors and products. We have implemented sector policies to define the minimum ESG requirements to be met by companies. These are aligned on sectorial best practices and international standards and regulations. Companies that fail to comply with these policies are ineligible for our portfolios and are added to our exclusion list.
Integrating ESG criteria into our investment processes helps our clients to create financial value over the long term and protect themselves from the reputational, financial and operational risks involved in investing in companies with poor environmental, social or governance practices. It is also our contribution as a responsible investor to sustainable development
Exercising our voting rights as a shareholder
Voting at general shareholder meetings is a key aspect of the dialogue between BNP Paribas Asset Management and the companies we invest in on behalf of our clients.
We always consider ESG criteria when exercising our voting rights. Why? Because as well as maximising its positive effects on society and the environment, adopting a responsible approach increases the likelihood of a company posting strong long-term investment returns.
In 2017, we voted at 1,490 general meetings.
Voting records of individual agenda items at company meetings are available publicly on this link :
A strong engagement
Engagement is a strong part of our responsible investment policy.
By regularly engaging with issuers, we aim to improve the long-term performance of our holdings. We promote good governance and corporate social responsibility practices across the companies we invest in, through an ongoing programme of dialogue.
Discharging our Stewardship Responsibilities
Stewardship Code aims at improving the quality of engagement between investors and companies to enhance long-term returns and an efficient exercise of stewardship duties.
BNP PARIBAS ASSET MANAGEMENT endorse the International Corporate Governance Network (ICGN) Global Stewardship Principles, as well as the EFAMA Stewardship Code. We are also signatory of the UK Stewardship Code and have been classified in the Tier 1 by the FRC. Our statement of compliance summarizes our stewardship approach, including the steps we take to meet the principles of the code.