BNP Paribas Asset Management outlines roadmap for achieving net zero portfolio emissions by 2050

November 8, 2022

As a signatory to the Net Zero Asset Managers initiative (‘NZAM’), BNP Paribas Asset Management (‘BNPP AM’) has committed to supporting the goals of net zero greenhouse gas (‘GHG’) emissions and to support investing aligned with net zero emissions by 2050.  BNPP AM has today outlined its Net Zero Roadmap, covering the progressive alignment of its portfolio investments with the goal of reaching net zero emissions, together with associated efforts across its stewardship activities and its operations.  BNPP AM’s Net Zero Roadmap is based on 10 commitments targeting net zero portfolio emissions by 2050:

1. Reducing the carbon footprint of its investments by 30% by 2025, and by 50% by 2030 (against a 2019 baseline)
2. Aligning its investments with net zero, targeting 60% of in-scope investments to be in companies
    Achieving, Aligned or Aligning with Net Zero by 2030, growing to 100% by 2040
3. Exiting coal by 2030 in European Union and OECD[1] countries and by 2040 in the rest of the world
4. Increasing investments in climate- and environmentally-themed solutions
5. Engaging with clients on their transition towards net zero investing
6. Voting for corporate climate action and for corporates to achieve net zero emissions by 2050 or sooner
7. Engaging with companies on net zero
8. Advocating for net zero-aligned national and international climate policies
9. Reducing its operational footprint, improving its energy efficiency and using more green energy
10. Reporting on its progress to stakeholders

These commitments build on the work done by BNPP AM during recent years.  It has been actively involved in ESG[2] investment since the launch of its first SRI[3] fund in 2002, and in 2015 it committed to contributing to achieving the Paris Agreement goals.  Since then, the scientific evidence for the human-induced causes and potentially dire effects of global warming of just 1.5°C above pre-industrial levels has strengthened substantially and it is now accepted that reaching global net zero emissions by 2050 is essential to prevent irreversible and massive damage from climate change.  In 2019, BNPP AM formalised its approach towards sustainable investment with the publication of its Global Sustainability Strategy, in which it pledged ‘to make a substantive contribution to the low-carbon energy transition’.  In November 2021, it reinforced this pledge by becoming a signatory to the Net Zero Asset Managers initiative, an international group of asset managers committed to supporting the goal of net-zero GHG emissions by 2050 or sooner.

BNPP AM’s initial commitment covers EUR 250 billion (50%) of its assets under management[4], and it has the twin aims of increasing the proportion of AUM included in its net zero commitments and strengthening its targets to ensure it reaches net zero by 2050 or earlier.  BNPP AM looks forward to working with clients, investee companies, industry peers, policymakers and civil society around the world on achieving mission critical: a net zero economy by mid-century.

Sandro Pierri, CEO of BNPP AM, comments:

“Society is increasingly moving towards a net zero emissions future and as a sustainable asset manager, we also need to transition our investments to net zero in a manner that combines industry-leading financial returns for our investors with positive real-world outcomes.  We believe that moving to a low-carbon, environmentally-responsible and more just economy is essential to ensure the long-term sustainability of capital markets.  Our ability to deliver sustainable long-term returns to our clients depends on it.”

Jane Ambachtsheer, Global Head of Sustainability at BNPP AM, comments:

“Achieving net zero by 2050 will not be easy as the global economy is not yet on a net zero pathway and our investible universe stands to diminish over time if our current and prospective investee companies do not accompany us in this transition.  We therefore believe it is critical to work in partnership with clients, colleagues, companies, governments and civil society to move towards a net zero future, and we look forward to making this journey together.”

The full version of BNPP AM's Net Zero Roadmap is available here.

- ENDS -

 

 

BNP Paribas Asset Management Net Zero Commitments

Investments

  1.  

Reduce the carbon footprint of in-scope corporate investments (Scopes 1 and 2)[5]

  1. -30% by 2025;
  2. -50% by 2030.
  1.  

Align with net zero

  1. 60% of in-scope investments to be Achieving, Aligned or Aligning with Net Zero (NZ:AAA) by 2030;
  2. 100% of in-scope investments to be NZ:AAA by 2040.
  1.  

Exit coal

Exclude mining companies that do not have a strategy to exit thermal coal activities, and power generators that still have coal capacity in their generation mix, in 2030 for European Union and OECD countries, and in 2040 for the rest of the world.

  1.  

Invest in climate solutions

Substantially increase climate- and environmentally-themed investments.

  1.  

Engage with our clients

Engage with our clients to transition towards net zero investing with us.

Stewardship

  1.  

Vote for climate action

  1. Signal our expectation for companies to report on their carbon footprint, and for the world’s largest GHG[6] emitters to set an ambition to achieve net zero by 2050 or sooner.
  2. Vote in favour of thoughtful shareholder proposals and submit proposals of our own to accelerate corporate action on climate change.
  1.  

Engage with companies on net zero

Implement an engagement strategy consistent with our ambition for all assets under management to achieve net zero emissions by 2050 or sooner.

  1.  

Advocate for net zero 2050 aligned climate policy

Play an active role in advocating for net zero aligned policy, and seek to ensure that any relevant direct and indirect policy advocacy that we undertake supports achieving global net zero emissions by 2050 or sooner.

Operations

  1.  

Reduce our operational emissions footprint

Continue to reduce our operational emissions, use more green energy and offset residual emissions.

  1.  

Report on progress

Produce TCFD[7]-aligned reporting.

 

SUMMARY OF BNP PARIBAS GROUP NET ZERO COMMITMENTS

  • April 2021: BNP Paribas joins the Net Zero Banking Alliance launched by the UN Environment Programme, in line with 2015 commitments to align its portfolio with the objectives of the Paris Agreement, and with the path required to become carbon neutral by 2050.
  • September 2021: BNP Paribas Cardif strengthens its responsible investment policy and commitments to the energy transition by joining the UN convened Net Zero Asset Owner Alliance, with a commitment to become carbon neutral by 2050.
  • November 2021: BNP Paribas Asset Management joins the Net Zero Asset Managers Initiative, an international group of asset managers committed to supporting the goal of net-zero GHG emissions by 2050 or sooner.

Footnotes

  1. ^ [1] The full list of member countries of the Organisation for Economic Co-operation & Development is available at https://www.oecd.org/about/members-and-partners/
  2. ^ [2] Environmental, Social & Governance
  3. ^ [3] Socially Responsible Investment
  4. ^ [4] Based on assets under management as at 30 June 2022
  5. ^ [5] Scope 3 emissions are not included in the calculation as the measurement of these emissions is not yet standardised or considered reliable enough to be used in reporting. Given the importance of scope 3 emissions in most sectors, we are evolving our approach to calculating scope 3 emissions with the aim of including it in the future.
  6. ^ [6] Greenhouse gas
  7. ^ [7] Task Force on Climate-Related Financial Disclosures. See www.fsb-tcfd.org for more information.

Expert

Contact