'Increasingly uncompetitive': BNP Paribas AM tightens coal investment policy

'Reduce the economic risk'

clock
BNP Paribas tighten coal mining investment policy
Image:

BNP Paribas tighten coal mining investment policy

The asset management arm of BNP Paribas has moved to strengthen its policies on high-carbon investments, today announcing tighter exclusions on companies engaged in coal mining and power generation.

The French banking giant, which manages €399bn of assets, said coal combustion was the single largest source of global warming and must be curbed to keep the Paris Agreement on track. It also stressed that coal is becoming "increasingly uncompetitive" in the face of less carbon-intensive fuel sources such as renewables. Reducing its role in BNP Paribas' portfolios will therefore "reduce the economic risk," it said. Under the new policy, which will come into force next year, BNP Paribas AM said it will exclude companies from its investments that derive more than 10 per cent of their re...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Asset Managers

The regulator noted there was broad agreement across the industry regarding the potential harms caused by the growing role of ESG data and rating providers.

FCA sees 'clear rationale' for regulatory oversight of ESG data providers

Mixed feedback on UK green bond standard

James Baxter-Derrington
clock 29 June 2022 • 1 min read

Event Voice: Your Questions Answered by Barings at the Fixed Income Event

Barings
clock 23 June 2022 • 2 min read
Kerry Leighton-Bailey, director of shareholder engagement at Lumi

Expecting the unexpected during a turbulent AGM season

Be prepared

Kerry Leighton-Bailey
clock 22 June 2022 • 4 min read
Trustpilot