In the 2020 edition of its ESG (Environment, Social and Governance) report, BNP Paribas REIM has unveiled its new approach to sustainable investment. The integration of ESG criteria into investment decisions now enables BNP Paribas REIM to anticipate risks more accurately, contribute to boost asset performance by strengthening resilience, and anticipate environmental legislation. In this report, BNP Paribas REIM also reviews the actions it has taken throughout 2020 to strengthen its ESG performance, and unveils its roadmap for the next four years. Its objective: to meet the major challenges of positive sustainable transformation.
Funds and assets that contribute to positive change
For several years now, BNP Paribas REIM has been taking ESG issues into account at corporate, fund and asset levels. This robust and pragmatic approach, which aims to minimise the environmental impact of assets under management, is implemented daily with all stakeholders.
Our approach has been strengthened as ESG issues are now integrated into all of our activities, from the selection of investments and their management to the disposal of assets. Being ESG driven is one of our five strategic pillars, and serves to mitigate the impact of our activities and adapt to future climate change issues
In this respect, since 2020, the funds managed by BNP Paribas REIM have been split into four categories, depending on their ESG profile and with the aim of complying with the new European regulation on sustainable finance (Sustainable Finance Disclosure Regulation or SFDR). "By 2022, 70%* of funds open to subscription to investors and 100% of the funds for private investors aim to be classified as 'Sustainable' and therefore comply with Article 8 or Article 9 of the SFDR regulation," explains Nehla Krir.
The ambition goes further, "By 2025, we want to offer institutional and private investors a range of funds open to the primary market composed of more than 90% of funds classified as ‘Sustainable’ according to the SFDR regulatory framework".
A strategy focused on three objectives
As part of the new ESG strategy launched at the end of 2020, BNP Paribas REIM has chosen to focus its efforts on three ESG objectives: reduce CO2 emissions, manage assets responsibly and boost stakeholders’ awareness to achieve positive change.
Indeed, Nehla Krir explains that, "Tangible objectives for improving ESG performance have been set for each of the ESG driven funds with concrete actions defined for each asset, and the implementation of performance indicators to monitor the progress."
For example, BNP Paribas REIM is currently working on a major renovation project involving an asset of the SCPI Acces Valeur Pierre fund. Thanks to its many qualities, and the creation of 2,500m2 of green spaces, the project at 185 Avenue Charles de Gaulle has obtained, among others, Breeam Excellent certification. The entire site has been green cleaned, with a total of 96% of the waste recycled. The entire operation has reduced the CO2 emissions impact by 34%.
Another success in 2020 was the awarding of the SRI label to BNP Paribas Diversipierre (Socially Responsible Investment). This label rewards BNP Paribas REIM's commitment to offering efficient real estate investment solutions across Europe, while positively contributing to society's evolution towards a more sustainable world.
BNP Paribas REIM has decided to strengthen the ESG strategy of all types of funds, whether they are diversified funds such as BNP Paribas Macstone or specifically themed funds such as the pan-European healthcare fund HPF Europe or the Core office fund, NEIF 3.
At the same time, BNP Paribas REIM is adopting advanced impact investing strategies: the European Impact Property Fund (EIPF), launched in 2020, is the first European institutional real estate fund to be in line with the Paris Climate Agreement. EIPF aims to reduce CO2 emissions by 40% across its European portfolio over the next 10 years. To achieve this goal, the fund is implementing a best-in-progress approach to improving the environmental performance of existing buildings in Europe, across all property sectors. In May 2021, less than six months after its launch, EIPF had already attracted more than €300m of capital from major European institutional investors.
Nehla Krir sums up by stating that, "Consolidating the ESG ambitions of our funds allows us to strengthen their attractiveness and meet the growing demand for responsible investment."
* % in market value as at 31.12.2020, covering pooled funds for private and institutional investors, excluding funds trading only on secondary markets