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BNP Paribas IP adds three SRI strategies to its Parvest range

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BNP Paribas Investment Partners has announced the addition of three innovative Socially Responsible Investment (SRI) strategies to its Parvest range, investing in themes considered to be key future social, economic and environmental challenges.

  • The Human Development strategy invests in companies that work towards improving the living conditions of the greatest possible number of people;
  • the Aqua strategy invests in companies that contribute to resolving the global challenges faced by the water sector;
  • the new SMaRT Food strategy invests in companies across the industrial food value chain that are addressing environmental issues created by increasing global demand for food.

These are long term engagement themes aimed at responsible investors who want to take advantage of opportunities presented by a changing world.

BNPP IP has considerable experience of managing thematic SRI strategies. Through its Parvest fund range, available in more than 30 countries, international investors can now access two of its SRI strategies that are already available in France. The Human Development and Aqua strategies have strong performance track records of more than five years, and have enjoyed significant success since their launch in France. Assets in each of these funds currently exceed €1 billion.

Human Development is an international equity strategy that invests in companies implementing a responsible and sustainable growth approach, whose business activities aim to improve the lives of the greatest possible number of people. These companies operate on several levels: they can work towards resolving issues relating to the ageing of the population, simplify access to affordable and high-quality food, maintain a clean environment thanks to research and to the development of services that reduce environmental footprints, or provide affordable education and healthcare, or new-generation drugs. Every one of these companies plays its part in facing up to the challenges of the modern world.

Giordano Beani of BNPP IP, the manager of the Human Development strategy, comments: “The challenges facing future generations cover many areas, including health, an increasing and ageing population and the growing pace of urbanisation. These challenges also offer long-term growth opportunities for companies able to adapt to them, in order to improve the lives of the greatest possible number of people”.

The Aqua strategy, invests in international equities with exposure to the water sector value chain. The strategy is managed by Impax Asset Management, BNPP IP’s specialised environmental investment partner. Impax AM has achieved widespread recognition for its innovation and the quality of its management. The Aqua strategy invests in companies operating in the construction, renovation and maintenance of water supply facilities, and technologies and systems for water treatment and decontamination, as well as services to local authorities. Around 20% of the assets are invested in companies operating in emerging markets.

Simon Gottelier of Impax Asset Management, the manager of the Aqua strategy, comments:  “There are many growth drivers in the water sector that will be present in the longer term, including the need for new hydraulic infrastructure in emerging markets, infrastructure renewal in developed markets and tighter regulation to guarantee high-quality water for consumers. All of these require substantial investment across the globe to ensure the quantity and quality of water supply to the greatest possible number of people.

Parvest SMaRT Food is an international equity fund based on an innovative approach known as “Sustainably Manufactured and Responsibly Transformed Food” (SMaRT Food). The strategy invests in companies across the food value chain that act in an environmentally-friendly way and demonstrate strong commitment to sustainable development through their business activities or processes. Favoured companies are those involved in combating food waste, reducing greenhouse gas emissions, saving water or protecting ecosystems. Amongst them are companies that are particularly innovative in the areas of creating biodegradable packaging, producing organic fertilisers that are less environmentally damaging, or designing irrigation systems that optimise water resources. Conversely, the investment universe does not include companies whose main business activity is producing food of a low nutritional quality, beverages with a high sugar content, or any substance likely to lead to diabetes or functional disorders.

Michael Landymore of Impax Asset Management, the manager of the SMaRT Food strategy, comments: “Consumer demand for natural and unpolluted food continues to grow. Furthermore, the general public is urging governments to take the necessary measures to solve environmental problems such as pollution and climate change. Substantial long term investment is needed in order to meet these key challenges.”

Anthony Finan of BNP Paribas Investment Partners, Deputy Head of the Distribution Business Line and Head of CSR (Corporate Social Responsibility), commented on the three new strategies: “Having recently signed the Montreal Carbon Pledge, BNPP IP is reinforcing its commitment to responsible investment by offering these investment strategies based on new SRI themes to its international clients. BNPP IP has a long-standing commitment to designing an extensive and innovative range of responsible funds, and increasing accessibility for the greatest possible number of people via the Parvest SICAV”.

Environment

These 5 Green Office Mistakes Are Costing You Money

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eco-friendly green offices
Shutterstock Licensed Photo - By Stokkete | https://www.shutterstock.com/g/cyano

The sudden interest in green business is very encouraging. According to recent reports, 42% of all companies have rated sustainability as an important element of their business. Unfortunately, the focus on sustainability will only last if companies can find ways to use it to boost their ROI.

Many businesses get so caught up in being socially conscious that they hope the financial aspect of it takes care of itself. The good news is that there are plenty of ways to go green and boost your net income at the same time.

Here are some important mistakes that you will want to avoid.

Only implementing sustainability on micro-scale

The biggest reason that brands are going green is to improve their optics with their customers. Too many businesses are making very minor changes, such as processing paperwork online and calling themselves green.

Customers have become wary of these types of companies. If you want to earn their business, you are going to need to go all the way. Bring in a green business consultant and make every feasible change to demonstrate that you are a green organization from top to bottom.

Not prioritizing investments by long-term ROI

It isn’t realistic to build an entirely green organization overnight. You will need to allocate your capital wisely.

Before investing in any green assets or services, you should always conduct a long-term cost benefit analysis. The initial investment for some green services may be over $20,000. If they don’t shave your cost by at least $3,000 a year, they probably aren’t worth the investment.

Determine which green investments will have the best pay off over the next 10 years. Make these investments before anything else. Then compare your options within each of those categories.

Implementing green changes without a plan

Effective, long-term planning is the key to business success. This principle needs to be applied to green organizations as well.

Before implementing a green strategy, you must answer the following questions:

  • How will I communicate my green business philosophy to my customers?
  • How will running a green business affect my revenue stream?
  • How will adopting green business strategies change my monthly expenses? Will they increase or decrease them?
  • How will my company finance green upgrades and other investments?

The biggest mistake that too many green businesses make is being overly optimistic with these forecasts. Take the time to collect objective data and make your decisions accordingly. This will help you run a much more profitable green business.

Not considering the benefits of green printing

Too many companies believe that going paperless is the only way to run a green organization. Unfortunately, going 100% paperless it’s not feasible for most companies.

Rather than aim for an unrealistic goal, consider the option of using a more environmentally friendly printer. It won’t be perfect, but it will be better than the alternative.

According to experts from Doranix, environmental printers have several benefits:

  • They can process paper that has been completely recycled.
  • They consume less energy than traditional printers.
  • They use ink that is more environmentally friendly.

You want to take a look at different green printers and compare them. You’ll find that some will meet your needs as a green business.

Poorly communicating your green business strategy to customers

Brand positioning doesn’t happen on its own. If you want to run a successful green business, you must communicate your message to customers as clearly as possible. You must also avoid the appearance that you are patronizing them.

The best approach is to be clear when you were first making the change. I’ll make an announcement about your company‘s commitment to sustainability.

You also want to reinforce this message overtime by using green labels on all of your products. You don’t have to be blatant with your messaging at this stage. Simply provide a small, daily reminder on your products and invoices.

Finally, it is a good idea to participate in green business seminars and other events. If your community has a local Green Chamber of Commerce, you should consider joining as well.

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Energy

Responsible Energy Investments Could Solve Retirement Funding Crisis

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Energy Investments
Shutterstock / By Sergey Nivens | https://www.shutterstock.com/g/nivens

Retiring baby-boomers are facing a retirement cliff, at the same time as mother nature unleashes her fury with devastating storms tied to the impact of global warming. There could be a unique solution to the challenges associated with climate change – investments in clean energy from retirement funds.

Financial savings play a very important role in everyone’s life and one must start planning for it as soon as possible. It’s shocking how quickly seniors can burn through their nest egg – leaving many wondering, “How long your retirement savings will last?

Let’s take a closer look at how seniors can take baby steps on the path to retiring with dignity, while helping to clean up our environment.

Tip #1: Focus & Determination

Like in other work, it is very important to focus and be determined. If retirement is around the corner, then make sure to start putting some money away for retirement. No one can ever achieve anything without dedication and focus – whether it’s saving the planet, or saving for retirement.

Tip #2: Minimize Spending

One of the most important things that you need to do is to minimize your expenditures. Reducing consumption is good for the planet too!

Tip #3: Visualize Your Goal

You can achieve more if you have a clearly defined goal in life. This about how your money can be used to better the planet – imagine cleaner air, water and a healthier environment to leave to your grandchildren.

Investing in Clean Energy

One of the hottest and most popular industries for investment today is the energy market – the trading of energy commodities. Clean energy commodities are traded alongside dirty energy supplies. You might be surprised to learn that clean energy is becoming much more competitive.

With green biz becoming more popular, it is quickly becoming a powerful tool for diversified retirement investing.

The Future of Green Biz

As far as the future is concerned, energy businesses are going to continue getting bigger and better. There are many leading energy companies in the market that already have very high stock prices, yet people are continuing to investing in them.

Green initiatives are impacting every industry. Go Green campaigns are a PR staple of every modern brand. For the energy-sector in the US, solar energy investments are considered to be the most accessible form of clean energy investment. Though investing in any energy business comes with some risks, the demand for energy isn’t going anywhere.

In conclusion, if you want to start saving for your retirement, then clean energy stocks and commodity trading are some of the best options for wallets and the planet. Investing in clean energy products, like solar power, is a more long-term investment. It’s quite stable and comes with a significant profit margin. And it’s amazing for the planet!

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