BNP Paribas AM Aiming to Cut Carbon Footprint of Multi-Factor Credit Funds in Half
BNP Paribas Asset Management (BNPP AM) announced today the launch of a mechanism aiming to reduce the carbon footprint of two of the multi-factor fixed income funds, BNP Paribas Euro Multi-Factor Corporate Bond and BNP Paribas US Multi-Factor Corporate Bond. The funds are managed by BNPP AM’s Multi Asset, Quantitative & Solutions (MAQS) investment division.
Applying the new mechanism, BNPP AM targets halving the funds’ carbon footprints relative to their benchmark indices, based on Scope 1 and 2 CO₂ emissions. In 2018, BNPP AM made similar commitments for its factor-based equity funds.
Isabelle Bourcier, Head of Quantitative and Index Management at BNPP AM, said:
“By integrating clear and quantifiable ESG and decarbonisation criteria within these multi factor funds, BNP Paribas Asset Management is reaffirms its commitment to sustainable investment by being one of the first asset managers to be able to offer such a comprehensive range covering the main equity and credit markets.”
According to BNPP AM, both of the funds have been granted French SRI certification based on the integration of ESG criteria, including improving the portfolios’ ESG scores relative to those of their benchmarks, excluding the bottom 10% of issuers with the worst ESG ratings, and Integrating normative and sector-based exclusions as defined by BNPP AM, in line with BNP Paribas Group sector policies.
BNPP AM stated that the carbon footprint reduction of the funds is in line with the firm’s desire to offer clients investment solutions that meet their environmental expectations, combining performance objectives, responsible investment and the fight against global warming.