BNP Paribas Securities Services has entered into a research partnership with Sycomore Asset Management to further develop a new environmental indicator, the Net Environmental Contribution.
The indicator measures the environmental impact of the economic activities of the companies, as well as portfolios and indices, giving them a score ranging from -100% to +100%. The indicator has been developed by Sycomore AM in collaboration with I Care & Consult and Quantis, and the underlying data and R&D cooperation has been recently extended to Trucost, part of S&P Dow Jones Indices.
Through the partnership with BNP Paribas Securities Services, Sycomore AM, a specialist in responsible investing, plans to accelerate full-scale testing of the indicator on more than 1,000 companies.
Christine Kolb, founding partner at Sycomore AM, explained:
"This indicator is a further step in our search for sustainable performance drivers. It enables our team to identify eco solutions and provides an impact reporting tool for our clients."
Florence Fontan, Head of the Asset Owners Client Line at BNP Paribas Securities Services said:
“Promoting and supporting sustainable investing is a key goal for BNP Paribas and we are delighted to be helping Sycomore AM test this industry leading methodology. Climate change is arguably the single biggest threat facing mankind and investors will play an important role in helping us transition to a greener more sustainable world. It is therefore vital that we help to provide investors with the tools they need to make informed decisions about their investments.”
Sycomore AM’s Eco Solutions methodology was first developed in 2015. To provide a comprehensive overview of the environmental impacts of a company, the methodology encapsulates the entire lifecycle of its products and services and also the positive impacts of its business model. The Net Environmental Contribution shows how a business is aligned with the energy and ecological transition and with climate related objectives. Scores range from –100% for an activity that is very harmful to natural capital, to +100% for activities with a maximum positive impact and which offer clear environmental and climate benefits.
Momentum has been building behind sustainable investing for some time, particularly among institutional investors and has been accelerating since the COP21 Paris Agreement. In addition to societal pressures, regulation is also driving this momentum, with initiatives such as the insertion of Article 173 into the French Energy Transition for Green Growth Law and the Financial Stability Board’s Task Force on Climate-related Financial Disclosures, acting as key drivers.
Sycomore Asset Management
Florence Jolin email@example.com +33 1 44 40 16 33
BNP Paribas Securities Services
Caroline Lumley firstname.lastname@example.org +33 1 79 74 80 12
Laura Barkatz email@example.com +44 (0)20 7410 4650
Follow Securities Services on Twitter - @BNPP2S
About Sycomore Asset Management (www.sycomore-am.com)
Founded in 2001, Sycomore Asset Management, an entrepreneurial investment firm that is majority held by its founding partners and employees, specialises in investing in listed companies. Its expertise is based on a hands-on approach and a proprietary model for analysing companies’ fundamentals. This model is both a financial and extra-financial analysis embedded in a dynamic database shared by a team of fund managers and ESG (Environment, Social, and Governance) specialists. Their task is to assess a company’s overall performance with regard to its stakeholders, including shareholders, clients, employees, suppliers, civil society and the environment. Member of the UN Principles for Responsible Investment since 2010, signatory of the Carbon Disclosure Project since 2013 and of the Montreal Carbon Pledge since 2005, we also joined the "Global Impact Investing Network" in 2016.
About BNP Paribas Securities Services (www.securities.bnpparibas.com)
BNP Paribas Securities Services, a wholly owned subsidiary of the BNP Paribas Group, is a leading global custodian and securities services provider. Backed by the strength of the BNP Paribas Group, we provide multi-asset post-trade and asset servicing solutions for buy and sell-side market participants, corporates and issuers. With local expertise in 36 countries and a global reach covering 90+ markets, our network is one of the most extensive in the industry, enabling clients to maximise their investment opportunities worldwide.