BNP PARIBAS: Support sustainable investment from private investors

BNP Wealth management operates the portfolio management of great wealth holders who want to invest in sustainable finance and have an environmental or social impact.

Often clients who want to invest in responsible finance are not sure what impact they want to have, so the first topic for BNP Wealth management is to define this impact with them.

• Step 1: Creation of the questionnaire my impact to help clients determine their impact profile; the exclusions they wish to bring into their portfolio.
• Step 2: BNP needs to identify and develop the financial and patrimonial solutions that correspond to the investor’s convictions.
• Step 3: Then the discussion between the investor and the private banker can start. The adviser proposes a personalized active management that adapts to market changes, helps the investor achieve its objectives and matches its return expectations and risk tolerance.

There are several sustainable investments that can be proposed to the investor:  green funds, ESG bonds and shares, edge funds, private equity. BNP needs to rate the positive impact regarding ESG (Environmental, Social, and Corporate Governance) criteria. BNP advisors put a grade for the company and the bonds and shares related to this company.

Several resources are necessary:

Human resources: BNP needs to create a specific department - a team of experts for sustainable investment. These experts should be well-versed with the possible constraints, specific requirements and risks with the private investors.

Material resources: Strategic-A tool that would help in a thorough risk-return diagnostic of wealth allocation. It investigates and models potential scenarios to optimise portfolio allocation in order to better reflect your investor profile and your specific needs.