BNPP AM to overhaul ESG and net-zero methodologies under 2030 strategy

Also intends to enhance sustainability reporting at entity and fund level

Measuring ESG, sustainability

|

BNP Paribas Asset Management (BNPP AM) is set to introduce updated ESG and net-zero methodologies in early 2027 as part of a new sustainability strategy.

The €1.7trn asset manager has unveiled a six-pillar roadmap to 2030, outlining plans to strengthen sustainability risk management, expand climate and natural capital investment capabilities, and increase its use of AI-enabled analytical tools.

It also plans to finalise an updated net-zero approach ahead of revised Net Zero Asset Managers (NZAM) targets expected at the end of 2026.

The strategy seeks to address risks linked to climate change, biodiversity loss, technological innovation, demographic shifts and geopolitical developments, while identifying long-term investment opportunities.

BNPP AM will also help clients navigate regulatory changes, including the proposed overhaul of the EU’s Sustainable Finance Disclosure Regulation (SFDR), while developing investment solutions focused on decarbonisation, sustainable forestry, carbon markets and biodiversity.

Meanwhile, the firm plans to strengthen coordination between investment and stewardship teams, with engagement priorities including responsible AI, hazardous chemicals and climate mitigation and adaptation.

It also said it intends to enhance sustainability reporting at entity and fund level, alongside governance, human rights initiatives and employee education.

Jane Ambachtsheer, chief sustainability officer at BNPP AM, said: “Sustainability is a key enabler of our strategy and investment philosophy. It helps us understand risk, identify opportunity and build resilient portfolios for clients over the long term.

“Looking to 2030, we will deepen our insight into systemic risks, strengthen stewardship and expand our capabilities across listed and alternative assets.

“Just as importantly, we will embed sustainability in our culture and day-to-day decisions, matching action with ambition and supporting the communities in which we operate through volunteering and partnerships.”

Read more: The death of lazy ESG