External alternative manager selection specialist and fund of funds manager BNP Paribas Capital Partners (BNPP CP), part of BNP Paribas Asset Management (BNPP AM), announced today that it has signed the Principles for Responsible Investment (PRI).

BNPP CP stated that becoming a PRI signatory allows the firm to align with recognised standards, providing transparency in line with its clients’ requirements, and paves the way for the launch of responsible investment products. According to the company, the move will also enhance BNPP CP’s investment approach, with the aim of delivering better outcomes for clients and contributing positively towards a more sustainable economy.

The Principles for Responsible Investment were established by a group of investor signatories in 2006, supported by the United Nations, to aid investors in integrating ESG factors into the investment process. To achieve this goal, the PRI group established 6 voluntary and aspirational principles* for investors to follow, including the incorporation of ESG issues into the investment process, and into signatories’ own ownership policies and practices. The PRI currently has over 3,000 signatories, representing more than $110 trillion in AUM. BNPP AM was one of the PRI’s 51 founding signatories.

Gilles Guerin, CEO of BNPP CP, said:

“We are proud to have been accepted as a PRI signatory, which is the first step towards achieving best practice as a responsible investor.  Our world faces major challenges and we are convinced that our responsibility as an investor includes a duty to act positively on environmental, social and governance issues.  Considering ESG factors over and above traditional financial analysis allows for a better assessment of risks and opportunities, and can positively impact the long-term risk/reward profile of our investment portfolios.  We believe that this is a core component of sound portfolio management practice.”

* The PRI principles:

  • Principle 1: We will incorporate ESG issues into investment analysis and decision-making processes.
  • Principle 2: We will be active owners and incorporate ESG issues into our ownership policies and practices.
  • Principle 3: We will seek appropriate disclosure on ESG issues by the entities in which we invest.
  • Principle 4: We will promote acceptance and implementation of the Principles within the investment industry.
  • Principle 5: We will work together to enhance our effectiveness in implementing the Principles.
  • Principle 6: We will each report on our activities and progress towards implementing the Principles.