Stewardship and engagement are important drivers of the move towards a more sustainable financial system in which investors are focused on long-term value drivers and the environmental, social and governance (ESG) aspects of investing responsibly.
In line with its role as a future maker, BNP Paribas Asset Management (BNPP AM) has published its first public policy stewardship strategy, outlining its priorities for advocating sustainable finance and its approach to engaging with issuers, regulators and public policymakers globally.
Dialogue and engagement help drive long-term value creation
Across the world’s 50 largest economies, there are now over 730 law revisions that support investors in considering long-term value drivers, including ESG factors. Half of these have been introduced in the last three years. ESG-related regulation has become the number one driver for ESG integration.
Stewardship to advance sustainability goals
Stewardship and engagement topics include corporate disclosure and governance, and climate policy. BNPP AM has called for the EU and developed countries and cities to set a long-term decarbonisation goal, and the company supports the establishment of a stable and transparent regulatory framework. It is pursuing mandatory reporting on issues such as the CEO-employee pay ratio, the gender pay gap, and greater transparency on lobbying practices as well as labour standards in supply chains.
The public policy stewardship strategy was launched at the recent first sustainable finance policy conference focused on global policy reform, convened by BNPP AM together with the BNP Paribas Group and the UN PRI. As a founding signatory of the Principles for Responsible Investment, BNPP AM has committed to being an active asset owner, incorporating ESG issues into ownership policies and practices, and participating in the development of policy, regulation and standard-setting.
Click here for BNPP AM’s public policy stewardship strategy
 Source: PRI research
 Source: Mercer research covering more than 900 European pension funds
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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.