As the sustainable investor for a changing world, BNP Paribas Asset Management believes it is essential to understand the impact of environmental change on the economy as fully as possible. Accordingly, we have been assessing our dependencies and impacts to better inform investment decisions.
When, as investors, we talk about dependencies and impacts, we are on one hand referring to the factors within the natural world on which the businesses we invest in depend. On the other hand, this concerns the impact on nature of the activities pursued by the companies we invest in.
First and foremost, this is about evaluating the exposure in our portfolios to water and deforestation risk. Questions include water intensity and exposure to water stress. On deforestation, the issues involve, for example, timber product sourcing and policies and procedures for sourcing commodities whose production has been linked to deforestation such as soy, palm oil, and cattle.
For more on BNPP AM’s biodiversity dependencies and impacts, and our efforts to establish standard biodiversity measurements and disclosures, watch this video with Robert-Alexandre Poujade.
Investors seeking opportunities in the area of biodiversity loss related solutions can find well-measured, diverse and transparent thematic investment strategies such those developed by BNP Paribas Asset Management, whose current thinking is detailed in its biodiversity positioning paper.