BNP AM

The sustainable investor for a changing world

Earth Day 2022

Earth Day brings together governments, companies and individuals from around the world to promote awareness of the environmental crisis and innovative solutions to it.

This year’s theme focuses on creating a global economy that brings back the health of our planet, protects our species, and provides opportunities for all.

The environmental crisis

Human society and the global economy are inextricably linked to water, land, biodiversity, forests and minerals. Once considered inexhaustible, these critical resources and ecosystems are now under severe pressure from current rates of consumption.

Climate-related risks, which are coming through more rapidly than previously thought, exert yet more pressure. Arctic summer sea ice, for instance, could disappear as early as 2035.1 The world is quite literally at tipping point.

Unless we act immediately and radically to reverse the situation, we will destroy our natural capital and be unable to sustain current economic growth rates and the prosperity levels that developed countries enjoy, let alone extend them to developing nations.

What we’re doing to help

At BNP Paribas Asset Management, we want to use our investments as a force for good. This means we:

  • Integrate environmental, social and governance (ESG) considerations across our strategies
  • Practice stewardship through shareholder engagement and public policy advocacy activities
  • Apply responsible business conduct policies and product-based exclusions
  • Focus on key sustainability issues including energy, equality and the environment
  • Promote awareness about the role finance can play in achieving a more sustainable world

Specifically, in 2021, we engaged more than 500 times with 296 companies, with 35% of our discussions being on environmental issues. For example, we urged these companies to take action to reduce their impacts on biodiversity and freshwater, and to put more information in the public domain about their environmental impacts and their efforts to reduce them. We also signed a statement calling for a new UN Global Treaty on Plastic Pollution and worked with other institutional investors to develop a new global investor initiative to halt nature loss.

How you can help

By allocating capital towards sustainable strategies or those that seek to effect change, investors can target attractive financial returns while making a positive contribution to the environment, society or both.

    References

    1 Nature Climate Change, Sea-ice-free Arctic during the last interglacial supports fast future loss, 2020

    Disclaimer

    Past performance is not indicative of current or future performance.

    This material has been prepared by BNP PARIBAS ASSET MANAGEMENT UK Limited (BNPP AM UK)*, and is issued by BNP PARIBAS ASSET MANAGEMENT UK Limited and BNP PARIBAS ASSET MANAGEMENT Malaysia Sdn. Bhd. (BNPP AM MY)**.

    This material has not been reviewed by the Securities Commission Malaysia.

    This material is produced for information purposes only and does not constitute:

    1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
    2. investment advice.

    Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio. The contents of this presentation are based upon sources of information believed to be reliable, but no warranty or declaration, either explicit or implicit, is given as to their accuracy or completeness.

    Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Any reference to past performance of any market or instrument should not be taken as an indication of future performance. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to the financial instruments may have a significant effect on the results portrayed in this material.

    This presentation is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Furthermore, any translation, adaptation or total or partial reproduction of this document, by any process whatsoever, in any country whatsoever, is prohibited unless the investment manager has given its prior written consent.

    All information referred to in the present document is available on www.bnpparibas-am.com.

    *BNP PARIBAS ASSET MANAGEMENT UK Limited is authorised and regulated by the Financial Conduct Authority.  Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom.

    **BNP PARIBAS ASSET MANAGEMENT Malaysia Sdn Bhd is an investment manager holding a Capital Markets Services Licence under the Capital Markets and Services Act 2007 of Malaysia, having its principal place of business at Vista Tower, Level 48D, The Intermark 348 Jalan Tun Razak 50400 Kuala Lumpur, Malaysia.