BNP Paribas Securities Services, a global custodian with USD 9 trillion in assets under custody, has launched ESG Risk Analytics, an innovative solution which enables clients to integrate Environmental, Social and Corporate Governance factors more easily into their investment decision-making process.
At a time of growing awareness of a broader range of investment risks, ESG Risk Analytics provides a detailed breakdown of how well clients’ investments and benchmarks rate against an extensive range of ESG factors. These include environmental factors, such as carbon emissions and energy usage; social factors, such as human rights and community relations; and corporate governance factors, such as board diversity and shareholder rights.
Patrick Colle, General Manager of BNP Paribas Securities Services, said: “ESG is becoming an essential part of the investment decision-making process.
However, putting an ESG-aware investment strategy into practice can prove difficult, with data gathering and analysis presenting some of the most testing challenges. Managing this data, analysing it and presenting it in a clear, concise and easily digestible way is the core of what the ESG Risk Analytics solution provides for clients.
With this new solution, we aim to help institutional investors overcome obstacles and incorporate ESG into their everyday investment decisions.”
Using comprehensive, granular and independently sourced data, ESG Risk Analytics evaluates up to 750 ESG data points for each company in its database. This data is then used to analyse clients’ portfolios, providing an overall ESG score, which can be compared to other portfolios and benchmarks. ESG Risk Analytics also provides much deeper analysis, breaking down a client’s portfolio to country, sector and individual security level.
ESG Risk Analytics is part of BNP Paribas Securities Services’ Data Navigation Analysis solutions.
Developing data analytics and visualisation solutions is part of BNP Paribas Corporate and Institutional Banking’s digital strategy.