BNP Paribas Asset Management is introducing new performance metrics on sustainability questions to boost the transparency of its reporting to clients further.
One metric will cover how well an investment portfolio does against its benchmark on environmental, social and governance (ESG) issues using a number of inputs. These are weighted by sector. BNPP AM now has ESG scores for 12 000 companies which will be reflected in its reporting at the portfolio level and versus the benchmark.
Carbon footprint reporting will be included in the fund fact sheets available on many BNPP AM websites. It will cover scope 1 and 2 emissions.
The enhancements are part of BNPP AM’s global sustainability strategy.
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Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.