In choosing to invest their money responsibly, citizens and economic actors help to finance projects and companies that are working toward preserving the environment and reducing social inequalities.
Saving and investing responsibly(Opens in a new tab)(Opens in a new tab)(Opens in a new tab)(Opens in a new tab) means putting your money in investment vehicles that will support companies working towards concrete solutions in addressing environmental and social challenges, or, which at least, take environmental, social and governance (ESG) criteria into account.
A growing need for societal utility
While BNP Paribas customers pursue their own goals – putting their money to work for them, preparing for retirement, starting up or expanding a company – a growing number feel the need to save and invest in a sustainable future.
The Group reorganised in 2021 to speed up its responsible approach, pooling its business lines and experts in protection, savings and investment within a single division, called “Investment & Protection Services(Opens in a new tab)(Opens in a new tab)(Opens in a new tab)”. Its goal is to strengthen the development of innovative solutions around savings and responsible investments and to enhance services provided to its customers.
BNP Paribas Asset Management offers investors (both individuals and institutionals) thematic funds with a sustainable objective such as BNP Paribas Aqua, BNP Paribas Climate Impact, BNP Paribas Energy Transition and BNP Paribas Green Bond.
BNP Paribas Cardif, through its partners, offers its clients with life insurance policies, the opportunity to select thematic units of account that meet environmental, social or societal challenges: energy transition, combating climate change, preserving biodiversity and supporting social or solidarity projects.
BNP Paribas Real Estate Investment Management creates and manages numerous real estate funds for different types of investors. The entire range of open-ended funds for retail investors is classified as Article 8 or Article 9, according to the Sustainable Finance Disclosure Regulation (SFDR). Most of these funds also have a label: Social Responsible Investment (SRI) or Finansol.
BNP Paribas REIM also offers a range of funds for institutional investors, including:
Next Estate Income Fund III (NEIF III), which invests in buildings with positive ESG characteristics and high levels of environmental certfication.
Healthcare Property Fund Europe (HPF Europe), a fund focused on the healthcare property sector with ESG approach that aims to improve the environmental performance of buildings and the well-being of users.
As part of its own-account investments, the Group has allocated a total of 450 million euros by 2025 to invest in startups and companies that put in place innovative solutions for the ecological transition, natural capital, local development and social impact.
BNP Paribas Cardif commited to allocate an average of €1 billion annually to positive impact investments between 2019 and 2025.
BNP Paribas’ Investment & Protection Services(Opens in a new tab) (unavailable link)(Opens in a new tab) (unavailable link)(Opens in a new tab) (unavailable link)(Opens in a new tab) (unavailable link) and Corporate & Institutional Banking(Opens in a new tab)(Opens in a new tab)(Opens in a new tab)(Opens in a new tab) teams offer responsible investment and financing solutions for institutional investors and large corporate clients. CIB is at the heart of transforming the global economy through its responsible financing and investment solutions, such as Bonds and Loans incorporating sustainability criteria: Green, Social and Sustainable bonds or loans; and sustainability-linked bonds (SLB) or sustainability-linked loans (SLL).
Two CIB 2022 landmark deals:
The Manaos platform, which was designed and incubated by the Securities Services business of BNP Paribas, helps investors and asset managers source reliable ESG data and report on the sustainability of their investments. Manaos offers a data-exchange interface, where investors and asset managers can get a comprehensive view of their portfolios and dive deep into all aspects of their investments in just a few clicks and secure way.
Manaos also provides an open-architecture ESG marketplace, where investors can plug their portfolio data to leading ESG data and service providers, offering scoring capabilities both at portfolio-level and asset-level across a broad range of complimentary apps.
LEARN MOREAbout a dozen official European labels certifying that funds are invested sustainably have been established in the past 15 years. They are sanctioned by public authorities in various countries and are awarded to funds that meet precise specifications, based on strict inspections conducted by independent bodies.
Some examples include European certifications like SRI, Towards Sustainability, Nordic Swan, LuxFLAG ESG, FNG-Siegel, Umweltzeichen; and specialised certifications such as Finansol, which covers solidarity-based savings in France, and GREENFIN, which covers investment funds contributing actively to financing the energy and environmental transition.
at BNP Paribas Asset Management are certified with a European responsible label
representing 139,5 billion euros in assets under management as of the end of December 2023.
ESG ratings assess companies on the basis of environmental, social and governance (ESG) criteria and allow asset managers to choose the most responsible of them in putting together their portfolios of investment funds. The ratings are done by specialised ratings agencies based on an analysis of public data and technical questionnaires. To go further, BNP Paribas Asset Management teams have developed their own, four-stage methodology, a more in-depth ESG process to quantify these data, with:
Created by BNP Paribas Wealth Management, the Clover evaluation aims to assess the responsibility level of financial products recommended to its clients, by asset class, whether or not the products are responsible, created or only recommended by BNP Paribas. For the construction process of discretionary portfolios and investment offers in advisory services, the rating of 0 to 10 Clovers given by the evaluation provides further insight into the level of responsibility for the products identified, with regard to the regulatory information provided by asset management companies (in countries where the European regulation on sustainable finance is applicable).
Hence, BNP Paribas Wealth Management seek to offer its clients the possibility to take into account sustainable development challenges in their investments alongside risks and Return on Investment.
Since March 2021, the first European regulation covering sustainable finance, called the Sustainable Finance Disclosure Regulation (SFDR), has set transparency obligations for financial market actors.
For example, Cardif Assurance Vie’s & Cardif Retraite euro fund meets the definition of Article 8 of the European SFDR regulation: it promotes a combination of environmental and social characteristics and verifies that the companies in which the investments are made apply good governance practices.
of BNP Paribas Asset Management’s open-ended funds domiciled in Europe are classified as Article 8 or 9*, according to SFDR regulations (as of december 2023).
Article 8: with environmental and/or social characteristics
Article 9: with a sustainable investment objective.
BNP Paribas measures and publishes the ESG scores of its funds, the CO2 footprint of its funds, the social impact of its solidarity-based funds, the contribution of its solidarity-based partners to the UN’s Sustainable Development Goals (SDGs), as well as the biodiversity footprint of its portfolios.
Meanwhile, BNP Paribas Asset Management’s teams are working actively towards establishing new impact-measurement standards, particularly for its portfolio’s water and forest footprint.
BNP Paribas’ reports are as concrete as possible. For example, if an individual has invested in an energy transition fund, he or she will know at year-end what CO2 emissions savings her money helped achieve, expressed in easy-to-understand language.
In addition to reporting on ESG score, carbon footprint and the social impact of its funds, BNP Paribas Asset Management is working on developing standards to measure the impact of its water and forest investments.
The Group is constantly developing and transforming itself in-depth in order to offer its customers the best responsible investment solutions and dedicated assistance.
Here are some examples of actions and resources it has implemented:
A network of over 140 ESG champions was set up in 2018 by BNP Paribas Asset Management. As a relay to the Sustainability Centre, they provide the sales teams with the necessary information and updates to assist their customers efficiently.
It includes our responsible investment solutions, our technological assistance tools and our ESG methodologies.
Called the ‘Sustainability Academy,’ this platform brings together training, information and tools that can be useful for everyone or focused on precise subjects depending on the user’s role. Updated regularly, this content enables Group employees to deepen their knowledge of sustainable finance, the challenges of the ecological and just transition; it allows them also to better understand our sustainable approach, as well as the dedicated products and services offered by the Bank.
Its goal: to accelerate the incorporation of sustainable development into each person’s daily work.
“The need to introduce ESG criteria into the core of our business lines and our savings and responsible investment solutions is a major shift. We have been able to stay ahead of it by adjusting our know-how, our offerings and our activities. We have accelerated this transformation in recent years in order to address social imperatives and our clients’ needs efficiently and over the long term. Our ambition is to become a leader in savings and responsible investments, and to contribute to BNP Paribas Group’s goal of becoming a global leader in sustainable finance."
