Responsible savings and investments
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.
What are responsible savings and investments?
Saving and investing responsibly 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.
Speeding up our projects in favour of responsible investment
BNP Paribas has been a pioneer in this area since 2006. In recent years it has picked up the pace in its development of responsible savings and investment solutions.
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”. Its goal is to strengthen the development of innovative solutions around savings and responsible investments and to enhance services provided to its customers.
My Impact, a digital tool to better identify my responsible investor profile
BNP Paribas Wealth Management has designed My Impact for and with its customers. This digital tool helps them identify the exact areas in which they wish to have a greater impact and the criteria for choosing those financial solutions that best suit their convictions.
A wide range of sustainable thematic funds
BNP Paribas Asset Management offers investors (both individuals and institutionals) sustainable thematic funds, such as BNP Paribas Aqua, BNP Paribas Climate Impact, BNP Paribas Human Development and BNP Paribas Ecosystem Restoration.
BNP Paribas Real Estate Investment Management offers a range of responsible real-estate funds such as BNP Paribas Diversipierre for individual customers. In November 2020, this became the first OPCI (REIT) fund to be awarded the official French SRI label. Each building is evaluated on the basis of 13 themes and 94 criteria, including energy use, CO2 footprint, and pollution. For European institutional clients, the Group’s real-estate investment experts offer the European Property Impact Fund (EIPF), the first Paris Agreement-compliant real-estate impact fund in Europe.
BNP Paribas Cardif pledges to invest an additional 5 billion euros in positive environmental and social impact investment projects by the end of 2024.
As of the end of 2019, 6.5 billion euros had already been invested.
This is BNP Paribas Cardif's total investment commitment in projects with a positive impact by 2024.
Supporting corporate customers and institutional investors
BNP Paribas’ Investment & Protection Services and Corporate & Institutional Banking teams offer responsible investment solutions for institutional investors and large corporate clients. CIB also offers responsible financing solutions, particularly in the form of loans and bonds incorporating sustainability criteria – sustainability linked loans (SLL) and sustainability linked bonds (SLB) – and social and green bonds.
In 2021, for example, CIB:
Manaos, an open-servicing ESG marketplace for institutional investors and asset managers
The Manaos platform, which was designed and incubated by BNP Paribas Securities Services, 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.
How can we know funds are truly responsible?
About 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 label
representing almost 132 billion euros in assets under management as of the end of December 2021
BNP Paribas’ ESG ratings
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:
- Selection and weighting of each company’s ESG indicators;
- An ESG evaluation vs. peers;
- A qualitative evaluation;
- Final ESG ratings of companies in the investment funds.
BNP Paribas’ “clover” rating methodology
Designed by BNP Paribas Wealth Management, this clover rating methodology measures the sustainability of all financial products it offers to its clients (whether created or recommended by BNP Paribas), regardless of whether or not they are certified sustainable. The scale of 0 to 10 clovers allows private banking clients to compare their funds’ level of sustainability in full transparency before investing.
SFDR, the first European regulation covering sustainable finance
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.
It classifies investment funds into three categories:
- funds having no sustainability objective;
- funds that promote ESG characteristics (“Article 8” funds);
- funds having a sustainability objective (“Article 9” funds).
of Assets Under Management
in BNP Paribas Asset Management’s open-ended funds distributed in Europe are already classified as “Article 8” or “Article 9”, based on SFDR
How to verify the environmental or social impact of investments?
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, and the contribution of its solidarity-based partners to the UN’s Sustainable Development Goals (SDGs). 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.
What about the financial performance of responsible investments?
International sector surveys show that ESG investments achieve a financial return that is equal to, or greater than, conventional investments, along with a better financial stability over the long term.
A survey conducted by Morningstar of 70 ESG indices on markets worldwide found that, between 2016 and 2020, incorporating ESG criteria enhanced their performances and mitigated their volatility.
- 75% of these ESG indices outperformed their market peers in 2020;
- 88% had outperformed in the five years to the end of 2020;
- 91% suffered fewer losses than their non-ESG peers during bear markets, in the past five years, including the bear market of the first quarter of 2020.
Dedicated experts and teams trained to better serve our customers
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.
Expansion of expert teams dedicated to responsible and sustainable investment
BNP Paribas Asset Management’s ESG centre of expertise has been expanded each year since it was established in 2002. Called the Sustainability Centre, it had 30 ESG experts as of the end of 2021. It provides the investment teams with sector and geographical research, along with analyses and ESG data covering more than 13,000 issuers, to help them make the right investment decisions on behalf of their clients. It incorporates regulatory standards into its work and designs sustainable thematic investment strategies. It also implements our stewardship policy, in order to have a positive influence on their sustainable and responsible practices.
The implementation of ESG champions to accompany customer advisors
A network of 130 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.
Cutting-edge training provided on a regular basis to employees in charge customer relations and developing our products
It includes our responsible investment solutions, our technological assistance tools and our ESG methodologies.
A dedicated teaching programme designed for the Group’s 200,000 employees
Called WE ENGAGE, the programme focuses on environement and social challenges and the role that each person can play. Its goal: to accelerate the incorporation of sustainable development into each person’s work on a daily basis.
“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."
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