BNP Paribas Asset Management leads the way to accelerate Net Zero ambitions in partnership with NYC Comptroller's Office and Climate & Nature Solutions

The summer of 2023 was the hottest ever recorded. Floods, wildfires, and heat waves have become commonplace across the globe. Without bold action, they will become more frequent and more catastrophic in the coming years and decades ? with profound consequences for our communities, our economies, and our portfolios. This is why the investors featured in the BNP Paribas Asset Management Accelerating Net Zero Ambition report are taking action to address climate risk as financial risk.

This joint initiative aims to provide clear guidance to the institutional investment community, to reposition their portfolios for sustainable growth. This means investing for resilience in line with the just transition to a low carbon economy, using capital allocation and stewardship as means of promoting the outcomes needed to avoid the systemic risks posed by a changing climate.

For the investors managing trillions in capital which have committed to net zero, this will not be an easy undertaking. It likely requires significant reformation of existing investment processes and new ways of thinking about portfolio management.

This report defines clear recommendations with real case studies of investors who have taken ambitious actions towards net zero. It builds upon recommendations of the UN's High-Level Expert Group on the Net Zero Emissions Commitments of Non-State Entities and shows what that work looks like in practice.

Jane Ambachteer, Global Head of Sustainability at BNP Paribas Asset Management explains

"Today many investors have committed to net zero but lack clarity on what to do next. The case studies compiled in this report are meant to serve as a guide, providing inspiration and insight even for investors already well on their way toward net zero. As an investor, we remain firmly committed to delivering long-term sustainable returns to our clients in this world in transition and hope this report provides useful insights for those who are embarking on this journey alongside us."

Brad Lander, Comptroller of the City of New York, adds

"The climate crisis is not "coming," it's already here. This report shows the way toward investments, consistent with fiduciary duties, in the decarbonization, mitigation and adaptation needed to reduce and eventually reverse climate change. Together, we can and must achieve the emission reductions ? not just in our portfolios, but in the real world ? that are necessary to prevent climate change from destroying trillions of dollars of economic value."

Catherine Mc Kenna, CEO of Climate and Nature Solutions and Chair of UN Expert Group on Net Zero Commitments of Non-State Entities, concludes

"What happens in this decade will be decisive and leaders everywhere must join the drive to net zero. It's particularly important that leaders in the financial sector step up. While we know where we need to land, we're all learning how to get there together. Many financial institutions are doing the work to provide examples we can all learn from. By highlighting some of their efforts here, we hope to inspire their colleagues to join in and speed up the transition."

To date progress against net zero goals has been slow. The commitments taken by the financial institutions highlighted in this report act as a bellwether for others actioning their existing commitments or considering joining the over 650 institutions that have already made a commitment within a GFANZ initiative. In working collectively to develop this report, we aim to share insights and examples which will help to galvanize further individual and collective action to avert the climate crisis and reduce associated risk to financial markets.

The full report is available here.

About BNP Paribas Asset Management

BNP Paribas Asset Management (?BNPP AM') is the investment arm of BNP Paribas, a leading banking group in Europe with international reach. BNPP AM aims to generate long-term sustainable returns for its clients, based on a sustainability-driven approach. BNPP AM's investment capabilities are focused around six key strategies: High Conviction Strategies, Liquidity Solutions, Emerging Markets, Multi-Assets, Systematic, Quantitative & Index and Private Assets, with investment processes incorporating quantitative and fundamental analysis. Sustainability is core to BNPP AM's strategy and investment philosophy. Among the leaders in thematic investment in Europe¹, BNPP AM intends to contribute to a successful Energy transition, healthy Ecosystems, and greater Equality in our societies (our "3Es"). BNPP AM currently manages EUR 540 billion of assets (EUR 656 billion of assets under management and advisory) and benefits from the expertise of more than 500 investment professionals and around 400 client servicing specialists, serving individual, corporate and institutional clients in 67 countries.

Source: BNPP AM, as at 31 December 2023

¹ Source: 2^nd in Europe for active sustainable thematic strategies, according to an analysis made by BNP Paribas Asset Management based on Morningstar data as at 31/12/2022.

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