This follows the success of the European version of the strategy that has reached EUR 300m AuM* since it launched in March 2019, bringing the total assets of our THEAM Quant Climate Care and Sustainable Development Goals linked solutions to EUR 1Bn**.
The Climate Carbon Offset Plan Funds provide exposure to equity markets, by selecting only companies that demonstrate high Environmental, Social and Governance (ESG) standards, which have robust energy transition strategy and a lower carbon footprint than their benchmarks. The remaining carbon footprint*** of the portfolio is offset every quarter through the purchase of Verified Emission Reduction certificates, issued by the Project Kasigau Corridor REDD+ in Kenya.
Leading European Insurance companies such as Allianz, Cardif, HDI Assicurazioni (part of the Talanx Group) and Gruppo ITAS Assicurazioni as well as foundations and pension funds such as have supported this innovative investment. They recognise the increasing need for sustainable solutions offering true environmental and social impact while also providing performance potential and liquidity.
The THEAM Quant – World Climate Carbon Offset Plan has received the “Towards Sustainability” label from Belgium Febelfin label.
About Project Kasigau Corridor REDD+
This project protects threatened forests, the wildlife that live in them and provides communities with a sustainable and transformative development path. Reducing Emissions from Deforestation and Degradation (REDD+) is a climate change mitigation strategy introduced by the United Nations. The plus sign relates to additional benefits for the local community and biodiversity. The Kasigau Corridor REDD+ Project has contributed to 11 of the 17 Sustainable Development Goals.
In 2019, the project has witnessed indicators of a transition toward durable, long-term impact. In particular, the Hadithi initiative has now grown to include over 1,200 women in 40+ groups creating handicraft and as of Q3 2019 had already paid out over $100,000 to its members; this program is achieving organic growth and self-sufficiency. And for the first time, the project has achieved a zero poaching level for ivory, the culmination of years of collaboration with the Kenya Wildlife Service.
A virtual reality video is available so that investors can fully appreciate how climate action can trigger social and economic impacts.
*BNPP AM, as at 31 December 2019
** BNPP AM, as at 31 December 2019
*** Scope 1 and Scope 2 emissions, this offsetting of carbon footprint can be considered as partial
HEAD OF MULTI-ASSET AND QUANTITATIVE SOLUTIONS (MAQS)
Denis Panel is Head of the Multi-Asset, Quantitative and Solutions (MAQS) investment group. Created in 2017 MAQS brings together the multi-asset investment capacities...