Launched in 2019, the BNP Paribas Energy Transition Fund invests in energy transition opportunities arising from increased energy demand, changing energy mix and the need for energy-efficient solutions to combat climate change.
The investment objective of the BNPP Energy Transition Fund is to invest in companies whose activities directly contribute to the transition of the global energy system.
The global energy system today is responsible for 70% of global CO2 emissions. To keep within the Paris Agreement target, we need investments of an estimated $90trn across Renewable Energy Production, Energy Efficiency & Technology as well as Energy Electrification & Infrastructure through 2050 (Source: Global Renewables Outlook, Energy Transformation 2050, April 2020).
The fund is an actively managed global equity fund with a concentrated portfolio of 30-50 ‘best-in-class’energy transition companies across the globe. Energy transition themes include, but are not limited to, renewable and transitional energy, energy efficiency, eco-mobility, and green infrastructure and construction.
The investment team is applying a disciplined four step investment process:
- The team identifies the most promising sub-industries globally from a top down approach across three core themes evolving around decarbonising, digitalising and decentralising the global energy system;
- The team identifies best-in-class companies within the relevant sub-industries through fundamental and quantitative screens, as well as applying ESG screens based on UN Global Compact and BNP sector policies.
- In-depth fundamental stock research and valuation work is then conducted whilst identifying risk/reward and scenario analysis as well as engaging with companies directly.
- Position weights are based on conviction, correlation and risk/reward with risk actively monitored and adherence to strict sell discipline.
The fund is in line with BNP Paribas Asset Management’s sustainable investment policy, which takes into account the Environmental, Social and Governance (ESG) criteria in the fund’s investment process.
Direct emissions generated by the company's activity.
Indirect emissions associated with the company's electricity and heat consumption.
Emissions induced (upstream or downstream) by the company's activities, products and/or services in its value chain.
Carbon sinks creation, (BECCS, CCU/S, …)
Emissions avoided by the activities, products and/or services in charge of the project, or by the financing of emission reduction projects.
Scope 3 - Financing of low carbon issuers
180.55 (Benchmark : 191.75): Carbon intensity (tons of CO2/€m, scope 1+2)
L’intensité carbone du fonds est la somme des émissions (en tonnes de CO2) de Scope 1 et 2 divisé par les revenus de l’entreprise (€m), pondérées par le poids de chaque entreprise dans le fonds.
Projects funded by the BNP Paribas Energy Transition Fund relate in particular to SDGs 7 (clean and affordable energy), SDG 9 (industry, innovation and infrastructure) and SDG 11 (sustainable cities and communities).