Scaling up purpose and positive impact in investment and finance
BNP Paribas Wealth Management, one of the leading global private banks for sustainable investment, is bringing a new sustainable approach to scale up purpose and positive impact in investments and finance for our clients who are increasingly demanding this commitment.
A FAST GROWING DEMAND FROM CLIENTS
In the past two years, the market for sustainable investments has grown at 34% to above US$30bn, with the Covid pandemic accelerating the trend. Indeed, 64% of investors believe the Coronavirus crisis is a tipping point for ESG investments.
BNP Paribas Wealth Management’s recently released Global Entrepreneur Report highlighted that 70% of entrepreneurs described themselves as “impact seekers”, with the intention to quadruple, on average, their financial commitment to sustainable investments. Amongst this entrepreneurial population, climate change is viewed as a priority in Europe, while access to affordable clean energy and promoting inclusive growth are the main priorities in the USA and in Asia, respectively.
“Expectations are different from one region to another, but entrepreneurs all want to contribute and use their wealth to leave a positive mark on society. The Covid-19 pandemic has also accelerated sustainable investing: almost two thirds of investors believe the coronavirus crisis is a tipping point for ESG investment. The wealth management industry has a major part to play in providing the right level of information, transparency and solutions to support this entrepreneurial commitment. Going one-step further this year, we recently launched our new, game-changing sustainability rating methodology across all asset classes, putting us at the forefront of the private banking industry. Thanks to this methodology, our clients can compare the level of sustainability of the investments we recommend. By the end of 2021, all of our recommended universe will be rated”.
Vincent Lecomte, CEO of BNP Paribas Wealth Management
THE CLOVER RATING METHODOLOGY TO FACILITATE CLIENT UNDERSTANDING
Sustainability is at the core of the bank’s DNA and drives its offering, with 1/3 of the bank’s investable assets already being sustainable; the volume of sustainable funds AUM increased by 40% over the past 12 months.
We launched our new, unique sustainability rating methodology (the clover rating) at the end of 2020 and this will be a game-changing initiative for the industry. It will facilitate clients’ adoption of sustainable investments. How? A clover rating is given to all recommended financial products, whether sustainable or not, to measure their sustainability level. Through this consistent approach with criteria adapted to all asset classes, clients can immediately assess the level of impact of the investments they choose, align their investments with their values and understand the level of sustainability of their entire portfolio.
BNP PARIBAS WEALTH MANAGEMENT LAUNCHS
A NEW SUSTAINABILITY RATING METHODOLOGY: THE CLOVER RATING
- This clover rating measures the sustainability level of all recommended financial instruments, whether responsible or not
- A consistent approach - with criteria adapted to all asset classes - to position the sustainability level on a single rating scale from 0 to 10 clovers
- “Sustainable” starts at 5 clovers, the minimum for sustainable mandates and advisory
- It allows clients to compare all financial instruments (funds, equities, bonds, ETFs, etc.) in their portfolio in order to align their holdings with their sustainability objectives
By the end of 2021:
- 100% of the recommended universe rated.
- More than 1/3 of the recommended universe will be sustainable, of which at least 50% of recommended funds will be SRI
ENHANCING EVEN FURTHER OUR FULL ARRAY OF SERVICES
Better advice starts with better knowing clients. To that end, BNP Paribas Wealth Management has accelerated the deployment of its unique digital assessment tool myImpact, a digital tool co-created with clients to help clients identify their own impact preferences and priorities in line with the United Nations 17 Sustainable Development Goals.
Furthermore, our training program for relationship managers has evolved over the past years to ensure that we can fully accompany all our clients in their impact journey.