BNP Paribas Asset Management (BNPP AM) announced today the launch of a new thematic fund, BNP Paribas Ecosystem Restoration fund, aiming to provide investors with exposure to companies engaged in the restoration and preservation of global ecosystems and natural capital.
Consisting of a high conviction portfolio of 40-60 holdings, the new fund invests in listed global equities across the capitalisation scale that offer environmental solutions contributing to the restoration of ecosystems through their products, services or processes. Thematic investment areas include aquatic ecosystems, such as water pollution control, water treatment and sustainable packaging, aquaculture, efficient irrigation systems and flood control solutions; terrestrial ecosystems, including technologies relating to alternative protein, sustainable agriculture, forestry and plantations, and; urban ecosystems, such as environmental services, green buildings, recycling, waste management and alternative modes of transport.
According to BNPP AM, the establishment of the fund comes in response to growing client demand, and as global initiatives, such as the recently launched United Nations Decade on Ecosystem Restoration, highlighting the trillions of dollars of investment set to be dedicated in coming years to the restoration of oceans, soil and urban areas. BNPP has increased its focus lately on natural capital and biodiversity, including entering a partnership with climate research provider and environmental disclosure platform CDP last month to explore and support the development of common biodiversity corporate reporting metrics.
The Ecosystem Restoration Fund will be co-managed by Senior Portfolio Managers Edward Lees and Ulrik Fugmann.
“Half the world’s GDP is dependent on natural capital and our consumption of it is taking place 1.75 times as fast as the earth can regenerate it, while global population growth and rising incomes are leading to increased demand, which adds up to an urgent need to restore damaged ecosystems. The financial sector has a critical role to play in creating a positive environmental impact and we are proud to have launched BNP Paribas Ecosystem Restoration to support the work of the UN and others in doing this.”
“BNP Paribas Asset Management has been at the forefront of sustainable investment for two decades and the launch of BNP Paribas Ecosystem Restoration complements our existing funds that invest in environmental change and the energy transition. The restoration of aquatic, terrestrial and urban ecosystems offers significant investment opportunities, and by supporting and engaging with those companies providing solutions to protect our natural capital, we aim to meet investor requirements for financial returns combined with a positive environmental impact.”