BNP Paribas Asset Management (BNPP AM) has introduced a 50% carbon footprint reduction mechanism on two of its multi-factor fixed income funds.
The BNP Paribas Euro Multi-Factor Corporate Bond and BNP Paribas US Multi-Factor Corporate Bond Funds now have an additional target to halve their carbon footprints relative to their benchmark indices, based on CO₂ emissions data scope 1 and 2 (direct emissions from companies and emissions from their energy consumption).
Both funds are Luxembourg-registered SICAVs and have previously been granted French SRI certification due to the integration of ESG criteria into their investment practices. This includes improving the portfolios’ ESG scores, excluding the bottom 10% of issuers with the worst ESG ratings, and integrating normative and sector-based exclusions as defined by BNPP AM.
Isabelle Bourcier, head of quantitative and index management, said: “By integrating clear and quantifiable ESG and decarbonisation criteria within these multi-factor funds, BNP Paribas Asset Management is reaffirms its commitment to sustainable investment by being one of the first asset managers to be able to offer such a comprehensive range covering the main equity and credit markets.”
This new commitment follows the carbon reduction targets originally implemented on the firm’s factor-based equity funds in 2018. BNPP AM’s total assets managed on a quantitative basis amount to more than €15bn (£13.6bn).