ESG is an international acronym. In asset management, it refers to the extra-financial “Environmental, Social and Governance” criteria that characterise responsible and sustainable management. Based on these ESG criteria and using a specific methodology, it is possible to assess the importance companies place on environmental respect, social relations within the company and governance in accordance with a certain business ethic.
The areas analysed for each criterion are numerous:
• Waste management, level of recycling, consideration of the circular economy • Energy consumption by type and volume • Efforts to reduce greenhouse gas emissions • Prevention of environmental risk and pollution • Combating deforestation
• Prevention of accidents at work • Staff training • Respect for employees’ rights • Inclusion of employees and respect for diversity • Quality of social dialogue
• Composition and independence of the Board of Directors • Separation of management functions • Presence of an audit committee and internal control procedures • Management remuneration • Representation of women in management bodies • Fight against corruption
When choosing securities for a UCITS, these criteria complement traditional accounting and financial analysis criteria. Their use demonstrates the willingness to provide long-term support to customers.
Our ESG policy in investment
BNP Paribas Asset Management’s ESG policy is based on compliance by the companies in which we invest with the 10 principles of the United Nations Global Compact, grouped into four main chapters:
- Respect for human rights
- Compliance with international labour standards
- Environmental protection
- Fight against corruption
In addition to these principles, we apply sectoral policies that regulate or prohibit investments in certain companies operating in so-called controversial sectors due to:
- their environmental impacts,
- poor social or governance practices, such as the weapons, palm oil, paper pulp, mining and tobacco sectors, etc.
Companies that do not meet our ESG criteria are excluded from our investment universe.
But we go further. We believe that the way we invest can contribute to improving the world around us.
Through these choices, we aim to reinforce the major economic trends of the years to come while respecting our values and avoiding any controversy over our investment policy.
BNP Paribas Easy ESG funds
BNP Paribas Easy offers investors a wide range of ESG funds.