It is about ensuring that the companies we invest in understand the risks they face as well as the risks they cause for others. This is best done by working constructively with companies and regulators to try to improve company performance and shape beneficial policies, he adds.
“If we can get better information, this leads to better decision-making and more accurate pricing of sustainability risks and opportunities,” Wilson-Otto says. This approach can have a particularly meaningful impact with companies that have an ambition to improve and when working together with like-minded institutions.
What guides our stewardship actions?
For sustainability at BNPP AM, there are three thematic areas: the energy transition to a low-carbon economy; care for the environment; and equality and inclusive growth.
In Asia Pacific, energy transition-related activities are focused on increasing the use of renewable and sustainable sources of power generation; environmental sustainability on the impact and causes of climate change, while also targeting deforestation and water scarcity.
What forms does stewardship take?
We use proxy voting at annual general meetings, direct engagement with companies and other issuers of securities, and public policy advocacy to change corporate practice. As part of our efforts, we are also working with other institutional investors. We believe that is in the long-term interest of ourselves, our investors and future generations to act to protect social and environmental systems.
BNPP AM believes stewardship and engagement are essential in the shift towards a more sustainable financial system. This means asset managers and investors should aim to create long-term value by considering the environmental, social and governance (ESG) aspects of investing responsibly.
Engaging with companies to convey our views on and concerns over a sustainable future is central to responsible investing. This is how we interpret taking care of long-term value as good stewards.
Also watch these videos on stewardship
- with Helena Viñes Fiestas, Deputy Global Head of Sustainability at BNP Paribas Asset Management and a member of the European Commission’s Technical Expert Group on Sustainable Finance
- Adam Kanzer, head of stewardship Americas
More articles on sustainable investing
Also read BNPP AM details engagement with issuers, regulators and public policymakers
This article has appeared in The Intelligence Report
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).