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Currently valued at EUR 100 million[[Source: BNP Paribas Asset Management, as at 25 September 2017]]
, Parvest Green Bond invests in bonds used to finance projects
designed to mitigate or address climate change issues. It is managed by BNPP AM’s Fixed Income team
leveraging proprietary analysis provided by its Sustainability Research Team. BNPP AM has been a market
leader in sustainable & responsible investing since 2002 and manages nearly EUR 30 billion in SRI
strategies, including more than EUR 500 million in green bonds (as at 30 June 2017).
Bonds are analysed using BNPP AM’s internal assessment methodology, incorporating financial and extrafinancial
analysis to identify the most appropriate portfolio holdings from the universe of almost 150 issues
representing around USD 115 billion of outstanding bonds. An innovative engagement process ensures
that investments have a positive impact on climate change.
This includes an initial meeting with the issuer
to verify each bond’s sustainability credentials ahead of purchase, combined with ongoing monitoring of
the environmental impact throughout the life of the bond.
The green bond market is expanding rapidly, and the inclusion of sovereign bonds such as the French
government’s EUR8.6 billion issue, as of June 2017 provides greater liquidity and depth to the market.
Green bonds can be issued by sovereigns, agencies or corporates, and enable capital-raising and
investment for new and existing projects that have environmental benefits, including limiting climate
change. Analysis conducted by BNPP AM suggests that between now and 2030, USD4 trillion will be
required annually to support the energy transition towards a low-carbon economy. Meanwhile the global
fixed-income market totals USD 100 trillion of outstanding securities. Green bonds are the missing link
between the need for energy transition financing and supply from debt capital markets, and are therefore
ideally suited to support low-carbon and climate-resilient development.
Felipe Gordillo, Senior ESG analyst & Arnaud-Guilhem Lamy, manager of Parvest Green Bond,
comment:
“Climate change is one of the greatest challenges of our time and green bonds are one of the best ways to
finance activities with low greenhouse gas emissions and to support low-carbon and climate-resilient
development. Meanwhile the rapid expansion of the green bond market means that it is now diversified
enough to offer a genuine investment solution. Our SRI research expertise dating back 15 years, very wellresourced
fixed income portfolio management capability and almost EUR 500 million of existing
investments in green bonds makes us ideally placed to manage Parvest Green Bond. Greenhouse gas
avoidance is the key climate benefit of the fund, enabling investors to offset carbon emissions in their fixed
income portfolios, as well as to meet sustainable regulatory requirements.”
Parvest Green Bond is benchmarked against the Bloomberg Barclays MSCI Global Green Bond Index (Euro
Hedged). It invests in issues with a minimum credit rating of B-, and may also use futures, options and
swaps. The fund aims to have a minimum of 83.5% of green bonds.
Denominated in euros, it uses FX
derivatives to hedge bonds issued in other currencies. The base currency is Euros. Parvest Green Bond is
currently registered for sale in Austria, France, Germany, Luxembourg and the United Kingdom.
This new launch contributes to the energy transition policy followed by BNP Paribas. The Group has a long
standing commitment to sustainability and aims to rank among the top three global players for eurodenominated
issues by 2018.
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