BNP Paribas Demonstrates Sustainability’s Alignment with ROI

The financial services industry has a very complex task to fulfil as sustainability takes a much higher rank in organisations and their operations, however, return on investment (ROI) remains at the top of investors’ minds. 

While sustainability effectively encompasses ROI as an element of economic growth, the two will need to go hand-in-hand in order for companies to facilitate long-term growth in a more responsible way. 

As such, BNP Paribas Asset Management (BNPP AM) puts sustainability at the core of its strategy and takes on the challenge of levelling the scales between finance and responsibility. The company’s path to reallocating assets in a more environmentally and socially lucrative way is all enclosed in its Global Sustainability Strategy (GSS), which covers the what, who, and how of its approach moving forward. 

BNPP AM is a long-standing committee to the cause, having launched its first socially responsible investment fund in 2002. Following this the organisation joined the Institutional Investors Group on Climate Change (IIGCC) and, in 2006, was a founding signatory of the UN’s Principles for Responsible Investment (PRI). 

BNP Paribas’ path that marries sustainability with finance

What does it mean to have sustainability at the core? For BNPP AM there are five key areas for value creation highlighted in the strategy, which encompass sustainability alongside risk management, people, global perspective, and research. 

• Risk Management: The value generated through research and idea creation meticulously conserved through suitable risk management
• Powered by People - Building a Diverse Team: Investment decisions are driven by individuals. BNP AM dedicates its energy to attracting, fostering, and maintaining a diverse range of talent—incentives aligned with clients' long-term sustainable goals
• Global Perspective: In an ever-more interconnected world, a global viewpoint is essential for making improved investment decisions
• Driven by Research: BNPP AM’s market perspectives and convictions are based on research, which serves as their cornerstone—utilising both quantitative and fundamental methods in our research. The company’s culture is rooted in curiosity, teamwork, and the spirit of challenge

What is BNPP AM’s approach? Firstly, recognising that investors cannot diversify from certain things. Understanding that low-carbon factors and social impacts are inevitable in decision-making, the company will continue to be conscious of the impacts of corporate, governmental and regulator engagements. 

Incorporating environmental, social and governance (ESG) into the mix will be much more achievable in the coming years as bodies solidify the standards that will govern how organisations report and act on sustainability. Aligning this with financial returns means focusing on the reputational and operational aspects of ESG as it pertains to the value of its clients.

Aiming to be a steward of sustainability investment, BNPP AM will liaise with companies and act as a bridge between legislation and financial success—offering insights for policy and engaging with clients to ensure that their thoughts are considered. 

With an abundance of points to focus on in its strategy document, BNPP AM’s CEO Sandro Pierri also shares his outlook for the future of the asset management firm through a sustainable lens. 

“The scale of impending disruption is unprecedented,” says Pierri. “It will require long-term investors to reposition their portfolios for sustainable growth, and a radically different level of thinking across the entire financial system than has been the case in the past. We also acknowledge that current conflicts and the associated geopolitical and economic uncertainty they bring could be a headwind to progress in the near term.” 

With this he explains that BNPP AM remains firmly committed to long-term sustainable growth for its clients in a world transition in many ways economically and sustainably. 

Full details of the strategy can be found HERE. 

*******************

Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024.

*******************

Sustainability is a BizClik brand.