Why environmental thematic strategies
Achieving a low carbon economy in harmony with our natural ecosystems requires a fundamental shift across every business sector and geography. This transition is backed by a growing number of institutions, corporates and consumers that will require tens of trillions of Investments over the next decades.1
Our environmental thematic strategies
BNP Paribas Asset Management is the sustainable investor for a changing world. Through our Environmental Strategies Group, we offer a complete suite of strategies targeting returns and positive environmental impact.
Our strategies are based on the premise that environmental themes may outperform the overall market over time and that exposure to these themes could generate attractive long-term return potential. They can also provide diversification and tangible environmental benefits.
Each strategy taps into key environmental themes through an active, global multi-sector approach to better manage risks and uncover the most compelling opportunities.
- Active management
- Quantitative tools
- Specialised investment team
- Thematic purity
BNP Paribas Ecosystem Restoration
Going beyond carbon and restoring the earth’s natural balance. Invests in companies that help restore and sustainably manage our aquatic, terrestrial and urban ecosystems.
BNP Paribas Energy Transition
Target companies that provide environmental solutions to facilitate the energy transition through decarbonisation, digitalisation and/or decentralisation.
BNP Paribas Environmental Absolute Return Thematic (EARTH)
Access companies facilitating environmental change in energy, materials, agriculture and industrial markets, while shorting those suffering from transition risk.
Our Environmental Strategies Group
Our Environmental Strategies Group are an experienced team of thematic investors, led by Ulrik Fugmann and Edward Lees, with a deep understanding of businesses, industries and technologies.
The team consists of portfolio managers, research analysts, investment specialists and a quantitative analyst. They benefit from access to our Sustainability Centre, Quantitative Research Group and global risk and trading platform.
- The uncapped impact series: agritech for food security (part I)
- The uncapped impact series: agritech for animal and human health (part II)
- The uncapped impact series with GreenLight Biosciences
- BNP Paribas Ecosystem Restoration: View performance and key documents
- BNP Paribas Energy Transition: View performance and key documents
- BNP Paribas Environmental Absolute Return Thematic (EARTH): View performance and key documents
1 Source: IRENA, International Renewable Energy Agency, World Energy Transitions Outlook, April 2021.
The investments in the funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the funds described being at risk of capital loss.
For a complete description and definition of risks, please consult the last available prospectus and KIID of the funds. Investors considering subscribing to a fund should read carefully its most recent prospectus and KIID that can be downloaded free of charge from our site.
Following the new Sustainable Finance Disclosure Regulation (SFDR) that came into force on March 10th this year, BNP Paribas Funds Energy Transition Fund, BNP Paribas Funds Ecosystem Restoration Fund and BNP Paribas Funds Environmental Absolute Return Thematic Equity Fund (EARTH) are categorised under Article 9.
Under this new regulation, financial entities such as BNP Paribas Asset Management who sell products into the EU are required to classify the products they manufacture or advise into three categories:
Products with sustainable investment objective (Article 9)
Products promoting environmental or social characteristics (Article 8)
Non-sustainable products (Article 6)
Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice.
The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
Environmental, Social and Governance (ESG) Investment Risk: The lack of common or harmonized definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, the Sub-Fund’s performance may at times be better or worse than the performance of relatable funds that do not apply such standards.