BNP Paribas Asset Management has announced it plans a 50% carbon footprint cut for two multi-factor fixed income funds.

The BNP Paribas Euro Multi-Factor Corporate Bond and BNP Paribas US Multi-Factor Corporate Bond now have targets to halve their carbon footprints relative to their benchmark indices, based on CO₂ emissions data scope 1 and 2. Both funds have previously been granted French SRI certification due to the integration of ESG criteria, consisting of:

• Improving the portfolios’ ESG scores relative to those of their benchmarks;
• Excluding the bottom 10% of issuers with the worst ESG ratings;
• Integrating normative and sector-based exclusions as defined by BNPP AM, in line with BNP Paribas Group sector policies

Isabelle Bourcier, Head of Quantitative and Index Management at BNPP AM, comments:
“By integrating clear and quantifiable ESG and decarbonisation criteria within these multi factor funds, BNP Paribas Asset Management is reaffirms its commitment to sustainable investment by being one of the first asset managers to be able to offer such a comprehensive range covering the main equity and credit markets.”