July 08, 2021
In 2020 BNP Paribas Cardif announced a commitment to accelerating deployment of its socially responsible investment policy, targeting an additional 5 billion euros in investments in activities with a positive environmental and social impact by the end of 2024. The insurer’s new impact investments totalled 1.2 billion euros in 2020. In conjunction with the publication of its Article 173-VI reporting (under the French Energy Transition and Green Growth law), BNP Paribas Cardif is spotlighting several significant initiatives in this area.
Environmental and social commitments
BNP Paribas Cardif has actively pursued a socially responsible investment strategy since 2008, managing the savings entrusted to the insurer by customers with two clear objectives: deliver financial performance and have a positive impact on society. In this way BNP Paribas Cardif imparts meaning to the investments of savers and enables them to support projects with a variety of thematic focuses:
• Environmental themes: investments focused on the energy transition and the environment, as well as protection of land and aquatic ecosystems.
• Societal themes: investments in initiatives to reduce social inequalities (affordable housing, digital divide), promote diversity (social diversity and support for women), and support employment.
• Multi-thematic investments with both environmental and social impact.
The insurer’s commitment led to investments in several noteworthy initiatives in 2020:
• Energy transition: the BNP Paribas Climate Impact fund (BNP Paribas Asset Management) invests in companies that reduce the impact of climate change on society and propose solutions to adapt to these changes. For example, this fund targets companies active in energy efficiency and renewable energies.
• Protection of ecosystems: the Global Environmental Opportunities fund (Pictet) employs a scientific framework to analyze the environmental footprint of industries across their entire value chain.
• Reduction of inequalities: the Infrastructures fund (Vauban Infrastructure Partners) finances installation of fiber optic networks in France in areas with limited coverage. These investments will enable the installation of over 11 million Fiber To The Home (FTTH) connections across France.
WHAT IS SOCIALLY RESPONSIBLE INVESTING?
Socially responsible investing (SRI) encompasses investments that apply Environmental, Social and Governance (ESG) criteria, coupled with exclusions and “best-in-class” or “best-in-universe” approaches. These investments may also integrate a sustainable thematic approach and certain investments may receive specific labels or certifications.
Impact investments are investments made with the intention of generating positive, measurable social and environmental impact alongside a financial return.