In line with its commitment to the Montreal Pledge – a UN-supported initiative to help make investors aware of carbon risk – BNP Paribas Asset Management measures and publishes the carbon footprint of its investment portfolios.
Carbon footprint reports provide insights into the carbon impact of funds. It shows the quantity of greenhouse gases (GHGs) connected to the investments chosen. The footprint is measured in kilogrammes of CO2 equivalent (CO2e) per EUR 100 invested.
BNPP AM focuses on two categories in the GHG Protocol:1
- SCOPE 1: direct emissions from company facilities
- SCOPE 2: indirect emissions from the company’s energy consumption.
Our calculation involves scope 1 & 2 emissions weighted for these factors:
- The company’s enterprise value (i.e., the sum of its debt and market capitalisation)
- The company’s weighting in the portfolio or the benchmark index.
The carbon intensity of each portfolio holding is added up to produce the carbon footprint of the portfolio. We also calculate the carbon footprint of the portfolio’s benchmark to compare that to the footprint of the portfolio.
Our approach allows us to measure the carbon footprint of equity funds and funds invested in corporate bonds.
In 2014, BNP Paribas Investment Partners claimed a total of eight awards at the Morningstar Awards (Singapore) and The Edge-Lipper Fund Awards.