A new handbook from BNP Paribas Asset Management (BNPP AM) explains how we identify the best sovereign bond issuers in terms of their environmental, social and governance (ESG) performance.
Our comprehensive methodology is applied across 109 developed and emerging countries that make up our sovereign bond investment universe.
The ESG quantitative scoring method, developed by BNPP AM’s Sustainability Centre, enables our specialists to compare countries with different levels of economic development and varying degrees of commitment to mitigating the risks of climate change.
It covers 225 key performance indicators within 14 environmental, 12 social, and seven governance themes to provide an in-depth view of each country’s sustainability credentials.
In addition to purely quantitative analysis, we may include a detailed qualitative overlay and embark on a dialogue with the country to better inform the eventual ESG score for the sovereign issuer.
These inputs provide us with the tools we need for better-grounded decision-making when selecting sovereign bond issuers.
Disclaimer
This material is issued and has been prepared by a representative of BNP PARIBAS ASSET MANAGEMENT Australia Limited (“BNPP AMAU”) AFSL 223418 ABN 78 008 576 449.
This material is produced for information purposes only and does not constitute:
1. An offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
2. Investment advice.
Opinions included in this material constitute the judgement of BNPP AMAU at the time specified and may be subject to change without notice. BNPP AMAU is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio.
Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to the financial instruments may have a significant effect on the results portrayed in this material.
All information referred to in the present document is available on www.bnpparibas-am.com.
