RESPONSIBLE INVESTMENTS
Responsible Investments in four questions
1.
What is responsible investing?
Responsible investing is a category of investment that seek to limit negative impact while having a positive impact on the environment and/or society, on top of the objective of financial performance.
What are the specificities or responsible investment compared to traditional investment?
- It is generally built around a medium- or long-term vision;
- It takes into account Environmental, Social and Governance (ESG) risks, on top of traditional financial risks;
- It considers ESG criteria along the entire investment process (idea generation, research, definition of the investment universe and investment decision), on top of financial factors.
2.
Responsible or sustainable?
When it comes to products, in countries subject to the European regulation on sustainable finance (SFDR and MiFID ESG), the term “sustainable” refers to a particular kind of product (products classified as Article 9 under SFDR and, in some particular cases, Article 8).
“Responsible” is a term that has no regulatory definition . At BNP Paribas Wealth Management, we consider this term to be less stringent than “sustainable” while still reflecting a significant integration of sustainable development challenges.
To get insights on the responsibility level of recommended products, adding to extra-financial regulatory information when available, we developed a proprietary analysis: the “Clover evaluation”. Thanks to this analysis, we are able to place all recommended products (equities, bonds, long-only funds, hedge funds, ETFs and private assets) on a unique scale of 1 to 5 Clovers.
According to our Clover evaluation, a product is considered “responsible” as from 3 Clovers. It is then eligible to a responsible portfolio.
At BNP Paribas Wealth Management, we are convinced that our task is to guide individual clients so that they can accelerate our society’s transition towards a more sustainable model.
Eleonore Bedel
Chief Sustainability Officer
3.
Why invest in responsible solutions?
Investing in responsible solutions can allow to answer 3 main objectives: anticipate risks, seize new opportunities and contribute to the transition towards a sustainable economy.
- Anticipate risks
Responsible investing takes ESG risks into account. These risks can be material and have a financial impact on the capital invested, hence the usefulness of seeking to protect oneself against them. In 2025, the World Economic Forum has updated its forecasts in terms of risks and this new edition confirms a trend already identified previously: environmental risks are the most important risks by 2035. They will also be the most impactful. - Seize new opportunities
New dynamics are emerging in the transition to a low-carbon economy. Investing in these new solutions can make it possible to benefit from them. For example, we can mention soft mobility, circular economy, etc. - Contribute to the transition
Massive investments are needed in certain sectors, such as low-carbon energy, to make the transition to a sustainable economy and achieve the goals of the Paris Agreement (limiting global warming to well below 2°C). Investing in solutions to mitigate and/or adapt to climate change is one way to take part in the transition.
4.
Responsible investment and financial performance
Responsible investments make it possible to seize new opportunities, linked for example to the ecological transition, and to control exposure to long-term risks. However, performance depends on the product, its asset class and the economic and geopolitical context. Like any investment, these investments are subject to upward and downward fluctuations, depending in particular on the evolution of the financial markets. They present a risk of capital loss that can be partial or total.
Why choose BNP Paribas Wealth Management for your responsible investments?
BNP Paribas Wealth Management benefits from a continually strengthened expertise of close to 20 years, both in traditional and responsible investing. It relies on:
- A dedicated Responsible Investing team established in 2006, the same year the UN Principles for Responsible Investment were created
- And on its financial experts (in Discretionary Portfolio Management and in Advisory, and for each asset class).
Our approach to responsible investing, and more widely, the integration of environmental and social challenges and opportunities into our activity were applauded by the 2024 Euromoney award, naming BNP Paribas Wealth Management "Best Private Bank for Sustainable Development”, for the third consecutive year.
Our offer
Regardless of management solutions, we offer our clients a wide range of financial instruments, across all asset classes, integrating varying levels of sustainability. Clients then choose the appropriate investment options to match their objectives or expectations of Return on Investment, level of risk and sustainability preferences.
We can advise and guide you in selecting the investment solutions that best suit your objectives and personal convictions.
Learn more about Responsible Investments
