Glossary

Impact Investing Approach

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Among these approaches, Impact investing offers the highest level of positive impact on the SDGs. It targets economic and social actors whose core business focuses intentionally on resolving social and/or environmental issues. Profitability of these players must be correlated to the long-lasting effect of their sustainable development initiatives.

At BNP Paribas Wealth Management, an Impact Investing solution must meet the following criteria:

1. the impact objective must focus on issues that are identified as sustainable and meet one or more SDGs.

2. the impact must be measurable, measured and subject to reporting.

Beyond the objectives sought through sustainable thematic investing, the Impact Investor seeks the combination of a strong targeted impact and financial performance.

The notion of intentionality in impact differentiates this approach from the previous three. Intentionality is defined by:

• the search for a strong, targeted and measured impact for the benefit of the investor.

• the selection, for an investment fund for example, of several companies or projects that are specifically dedicated to generating a positive impact.

• The impact objective must focus on issues that are identified as sustainable.

• The impact must be measurable, measured and subject to reporting.

• The impact measurement methodology must be transparent and assessed by the BNP Paribas Wealth Management Sustainable Investment team.

A system of clovers that reflects the level of sustainability for financial investment.

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Green bonds, private equity and structured products with a positive impact, microfinance, etc.

 

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