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Parvest Green Bonds: a new fund for sustainable investment
18.07.2018 | Sustainable finance
Investing in sustainable and profitable projects is the goal of Parvest Green Bonds, a green bond fund launched by BNP Paribas Asset Management. According to the latest analyses, green bond issuance is projected to grow by 30% in 2018. Good news for the sector—and for the planet!
A new and ambitious green bond
The latest initiative from BNP Paribas Asset Management has seen more than 160 million euros invested in bonds designed to finance projects to combat climate change. All bond issuances tied to Parvest Green Bonds, the Group’s new fund, must meet sustainability conditions for a strong positive environmental, social and governance impact. To calculate these impacts, the fund includes a proprietary analysis methodology developed internally.It applies an innovative process for ensuring these commitments:
- In the initial phase, analysts meet with the bond issuer to ensure that each bond meets the requirements before the purchase
- After the acquisition, they monitor the bond on a continuous basis, ensuring its environmental impact over time
BNP Paribas—a leading player in green bonds
BNP Paribas—a leading player in green bonds
- In 2017, the Group maintained its spot among the top three global players, in euros, in the green bond market
- Since 2012, the Group has served as Joint Lead Manager of 10.2 billion euros in green bonds, including 1.1 billion euros in equity-linked bonds
- The Group invested a total of 5.3 billion euros in green bonds in 2017
The BNP Paribas Group—a leader on the socially responsible investment market
BNP Paribas’ asset management division has been committed to sustainable investment since 2002. It now manages more than 35 billion euros in Socially Responsible Investments (SRI), and nearly 900 million euros in green bonds. Proof of BNP Paribas’ long-term commitment? 25 of its funds obtained an SRI label in 2017. Among them, 13 received the French government’s SRI label, created to ensure a strong level of responsible approaches. Four funds also received the LuxFLAG Environment label and five obtained the Finansol label for solidarity finance.
In 2017, among its initiatives to promote green bonds, the Group notably:
- Took part in launching the first French sovereign green bond, the Green OAT 1.75% 25 June 2039, representing a total of 7 billion euros.
- Supported, via its subsidiary BNP Paribas (Switzerland), the issuance of the country’s first corporate green bond—the SME Helvetia Environnement—raising 75 million Swiss francs to finance projects in waste management and recycling.
- Served as the bookrunner for the issuance of the first hybrid corporate green bond, for a total of 1 billion euros, carried out by the Dutch electricity transmission system operator TenneT. Collected funds will serve to finance the connection of offshore wind turbines.
BNP Paribas—a bank committed to green finance
This initiative from BNP Paribas follows many other environmentally conscious efforts. Since the COP21 in 2015, BNP Paribas has stepped up its commitments to combat climate change and encourage the energy transition. In terms of green finance, the Group has committed to investing the following by 2020:
- 15 billion euros in financing renewable energies
- 100 million euros in startups working in the energy transition
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