Banken for en verden i endring The bank for a ... - BNP Paribas

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Banken for en verden i endring The bank for a ... - BNP Paribas

• relations with clients and suppliers / socially responsible investment

For socially responsible investments,

BNP Paribas Asset Management carries out indepth

research to identify potential sources of

value creation or destruction by encompassing

issues of corporate governance and corporate

social and environmental responsibility.

This non-financial analysis rounds out standard

financial analysis by shining a light on how

companies handle issues related to sustainable

development, in terms of the commitments they

undertake, the resources they deploy in the field

and the results they obtain. Like financial analysis,

research on non-financial aspects is conducted

by a team of specialists. This research

is designed with a view to value creation and

relies on the use by analysts of appropriate analytical

grids, which include assessment criteria

based on the specific challenges of different

industries.

As an example, compliance with fundamental

labour rights by the company and its suppliers is

a major issue in the textile and electronics sectors,

while emissions of greenhouse gases and

risks related to climate change receive priority

treatment in assessing the energy, electricity

production, transport, insurance and building

materials industries. The portfolio is assembled

using risk modelling and rankings by sector.

These analyses are regularly reviewed and systematically

integrated into management processes.

Such extra-financial analysis, supported

by direct contact with companies, is rounded

out by the work of ratings agencies and by

brokers’ reports. In addition to this system, a

monitoring process seeks to detect the possible

emergence of critical situations that could

lead to valuations being revised.

ExERCISING VOTING RIGhTS

For BNP Paribas Asset Management, the

exercise of voting rights is an integral part of

the management process, as a component of

the ongoing dialogue with companies in which

investments are made on behalf of clients. The

company’s voting policy reflects the principles

of governance set out in the key international

codes and standards. All mutual funds in both

France and other countries exercise their voting

rights at AGMs. This includes a scope

of approximately 300 companies owned by

200 mutual funds. The voting process is based

on an analysis of draft resolutions and decisions

are applied through electronic voting

platforms that allow secure processing. The

documents concerning the exercise of voting

rights at Shareholders’ Meetings are available

at BNP Paribas Asset Management’s website

www.am.bnpparibas.com

98 BNP PARIBAS AND ITS STAKEHOLDERS

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