• Exclusion Policy: BNP Paribas Asset Management will no longer invest in new bonds issued by companies involved in oil and gas exploration and production, aligning with broader sustainability goals.
• Sustainability Focus: Eligible companies must demonstrate “credible climate commitments” and “realistic transition plans” to maintain investment eligibility, with regular reviews ensuring compliance.
• Industry Leadership: Reclaim Finance recognized BNP Paribas as the first major asset manager globally to exclude new oil and gas bonds, highlighting the significance of the decision.

BNP Paribas’ Shift Towards Sustainable Investing

In a November strategy update, BNP Paribas Asset Management announced it would cease investments in new bonds issued by oil and gas exploration and production companies. This move aligns the asset manager’s policies with the broader BNP Paribas Group, which has not participated in bond issuance by such companies since 2023.

The decision supports oil and gas companies transitioning to sustainable energy sources while screening out those failing to adapt swiftly. The firm clarified that while it will stop purchasing new bonds from these companies, it will continue to invest in their existing debt and equity under strict conditions and exclusions.

Commitment to Climate Goals

Oil and gas companies seeking investment from BNP Paribas must adhere to stringent criteria. The firm stated:

“Companies must have credible climate commitments and realistic transition plans.”

Regular reviews will assess compliance, encouraging companies to adopt lower-carbon, sustainable business models. Companies not meeting these standards face disqualification from future investment.

Lara Cuvelier, sustainable investments campaigner at Reclaim Finance, praised the move:

“Bonds are one of the most important modes of financing for companies in the fossil fuel sector today.”

Leading by Example in Sustainable Finance

The fund manager’s decision is part of a broader trend among European financial firms reducing exposure to fossil fuels. BNP Paribas Asset Management already restricts investments in oil and gas operations in ecologically sensitive areas such as the Amazon, the Arctic, and unconventional resources like shale or oil sands.

As of now, BNP Paribas Asset Management holds $1.8 billion in equity exposure to oil and gas companies, with notable investments in TotalEnergies across 49 funds. However, this recent policy signals a significant shift towards sustainability-focused financial strategies.

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