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.