El inversor sostenible para un mundo en evolución
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ESG and SRI themes

 

ESG/SRI: prioritise responsible investment

At BNP Paribas Asset Management, we strive for a world where all investments are responsible. For us, responsible investment is not just about a financial equation. We know that a broader approach is necessary.

What is SRI?

  • The term SRI,*** socially responsible investment, refers to an approach that aims to reconcile economic performance with social and environmental impact by investing in companies that contribute to sustainable development, irrespective of their sector of business.
  • By influencing the governance and conduct of stakeholders, SRI promotes a responsible economy

What is ESG?

  • ESG incorporates Environmental, Social and Governance selection criteria in companies in which we invest, to comply with the 10 principles of the United Nations Global Compact on respect for human rights and workers’ rights, the protection of the environment and the fight against corruption.
  • Our approach also involves the application of “sector policies” that set a framework for, or prohibit investment in, companies operating in controversial sectors with a high environmental impact and poor social practices or governance. These sectors include weapons, palm oil, paper pulp, mining activities and tobacco Companies that do not comply with our ESG criteria are excluded from our investment universe.

 

SRI equities and bonds range

The term SRI, socially responsible investment, refers to an approach that aims to reconcile economic performance with social and environmental impact by investing in companies that contribute to sustainable development, irrespective of their sector of business.
By influencing the governance and conduct of stakeholders, SRI promotes a responsible economy. The SRI range covers these two categories:

SRI equities range

BNP Paribas Easy includes a range of equity SRI ETFs covering major geographical areas: the world, Europe, the eurozone,
Japan, emerging markets and the US. The funds apply the MSCI SRI methodology based on a best-in-class approach: we select the best companies in each business sector, so that the portfolio combines financial results and responsible investment.

SRI bonds range

BNP Paribas Easy includes a range of bond SRI ETFs. They replicate the Bloomberg Barclays MSCI Euro Corporate SRI Sustainable Reduced Fossil Fuel index, with different maturities (1-3 years, 3-5 years and all maturities). The funds offer investors exposure, with a low-carbon impact, to investment-grade euro-denominated corporate bonds, selected on the basis of MSCI SRI criteria.

 

Circular Economy equity fund

What is the circular economy?

The so-called linear economic model consisting of a “take-make-dispose” approach is not viable over the long term. Resources–raw materials and non-renewable energy – are diminishing, the impact of waste, especially plastics, is unsustainable and the global population is growing constantly. This is why all economic participants should move towards a new production and consumption model known as the circular economy that aims to minimise the consumption of non-renewable resources and the amount of waste.

BNP Paribas Asset Management launches first circular economy ETF

The BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF replicates the ECPI Circular Economy Leaders Equity index. It allows investors to be exposed to the performance of 50 international large-cap stocks selected for their active participation in the circularity of goods, materials and commodities in several categories: circular design, recovery of materials, product life extension, sharing platforms and offering products as services (cloud, leasing, exchange of goods).

What are the challenges for the circular economy?

The challenges are global. This is why the subject has become a major source of concern for governments and the European Commission. They include introducing better waste management, reducing greenhouse gases and reviewing the principle of the
planned obsolescence of products. At all levels, the aim is to learn how to increase the levels of sharing, leasing, reusing,
repairing and recycling. Investing in this theme and therefore in companies that pledge to respond appropriately to the circular economy provides opportunities in terms of long-term investment performance.

 

Low carbon

Investors are increasingly aware of the need to reduce the carbon footprint of portfolios. Launched by BNP Paribas Asset Management in October 2008, BNP Paribas Easy Low Carbon 100 Europe® UCITS ETF was the first low carbon emissions ETF in Europe.

This ETF replicates the Low Carbon 100 Europe® index, made up of 100 European companies selected using a best-in-class approach focusing on the best companies in terms of CO2 emissions in each sector.

Page Listed property

BNP Paribas Easy includes several ETFs replicating FTSE EPRA/NAREIT indices that provide exposure to listed companies based in Europe or the eurozone that manage and seek to increase the value of residential, industrial, office and retail property assets. One of the ETFs is the BNP Paribas Easy FTSE EPRA/NAREIT Developed Europe ex UK Green UCITS ETF. This replicates an FTSE EPRA/NAREIT index that focuses on the most environmentally friendly property companies in developed
European countries (excluding the UK).