BNP Paribas Asset Management was the first international asset manager to sign the Montréal Pledge in May 2015. Launched under the United Nations’ leadership, this initiative encourages investors to give greater consideration to carbon risk. Since signing the pledge, BNP Paribas Asset Management has been working to measure and publish its portfolios’ carbon footprint and gradually incorporate this risk into its investment decisions.
In 2017, BNP Paribas Asset Management calculated the carbon footprint of around 200 funds versus 100 in 2016. Some of these funds are registered in Luxembourg, but not all (some others are registered only in France, or in Belgium, or the Netherlands).
In addition to financial reporting, this page provides information on the investment fund’s carbon impact. A fund’s carbon footprint seeks to determine the amount of greenhouse gas (GHG) emitted by the investments selected through the fund. The footprint is measured in carbon dioxide equivalents (CO2e). This indicator assesses the global warming potential of six major greenhouse gases in CO2e.* To aid understanding, the fund’s carbon footprint is compared to common features of daily life and is also broken down by business sector.
Calculating your carbon footprint
The GHG Protocol1 establishes greenhouse gas emission reporting standards for companies. Emissions are broken down into three categories, with varying proportions depending on the company’s line of business.
> SCOPE 1 Direct emissions from the company’s facilities.
> SCOPE 2 Indirect emissions linked to the company’s energy consumption.
> SCOPE 3 Other indirect emissions, including those related to the use of its products.
To calculate a fund’s carbon footprint, companies’ CO2e emissions are added up and weighted by market capitalisation and the companies’ weight in the portfolios.
Today, the measurement of Scope 3 emissions and avoided emissions2 is not standardised or considered sufficiently reliable to be used in reporting. As a result, the calculation of a company’s carbon footprint currently focuses on Scope 1 and Scope 2 emissions. This method, however, will increase in efficiency as the data and indicators improve, with the aim of achieving greater relevance.
- 1. GHG Protocol: international standard for measuring greenhouse gas emissions
- 2. The emissions avoided by a company as a result of the sale of products that enable end-customers to reduce their emissions.
In 2014, BNP Paribas Investment Partners claimed a total of eight awards at the Morningstar Awards (Singapore) and The Edge-Lipper Fund Awards.