BNP Paribas’s Securities Services business has enhanced its existing investment compliance screening capabilities to include a wide range of ESG criteria. The new service enables asset managers and asset owners to incorporate customisable and flexible ESG criteria into their portfolio monitoring.
BNP Paribas’s outsourced investment compliance monitoring service provides automated post-trade monitoring, offering independent assurance that funds are meeting their ESG commitments, investment objectives are met and any breaches are highlighted.
The new ESG service employs a wide range of data feeds from external and internal sources to allow asset owners and managers to monitor their portfolios. BNP Paribas screens portfolios against customised and flexible criteria tailored to clients’ ESG framework, including standardised ESG ratings and benchmarks, exclusion from specific activities, inclusion or restrictions from specific sectors, countries or companies, and the impact of controversies.
The ESG capabilities are currently available to investment funds domiciled in France and Luxembourg, and will shortly be offered to funds in Australia and New Zealand. Throughout 2023 and 2024, Securities Services at BNP Paribas will roll out the service across other locations in EMEA and APAC and continue to evolve and develop the platform.
The Securities Services business of BNP Paribas performs investment compliance in 19 locations for over EUR 2.3 trillion of client assets and across more than 10,200 funds and mandates for its clients, which include insurance companies, pension funds, asset managers and fund promoters.
Nevan Redmond, Global Head of Product, Depositary and Fiduciary Services, Securities Services, BNP Paribas, said: “As the ESG market diversifies and matures, it is vital that investors have confidence in the sustainability-related labelling or classification of their funds. Our newly launched ESG investment screening capability is a really exciting development in this journey. Through our independent third-party validation of ESG criteria, we can provide asset managers and owners with the critical and flexible infrastructure they need to build trust with their investors and expand their sustainability product ranges.”
About Securities Services at BNP Paribas
The Securities Services business of BNP Paribas is a multi-asset servicing specialist with locaBNP Paribas’s Securities Services business is a leading global custodian providing multi-asset post-trade and asset servicing solutions to buy-side and sell-side market participants, corporates and issuers. With a global reach covering 90+ markets, its custody network is one of the most extensive in the industry, enabling clients to maximise their investment opportunities worldwide.
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