The world is changing

We know that sustainability is important to BNP Paribas Pension Plan members. It’s important to the BNP Paribas Governance Committee that the investment options you have support both your retirement planning and wider sustainable goals.

• Over £745m* of members savings invested in the Global Sustainable Growth Fund
  
  In September 2020, the Global Sustainable Growth Fund was introduced into all three of the Plan’s lifestyle strategies, including the default investment. This move affected over 90% of Plan members, making them sustainable investors almost overnight. With continued investment and growth, as of 6 December 2022, there was over £745m invested in the fund. 
• The Global Sustainable Growth Fund in 2022: Water saving is equal to 495 Olympic swimming pools
  
  In 2022, further changes were made to the Global Sustainable Growth Fund to improve the funds ESG (environmental, social and governance) profile. These changes resulted in an 8% saving on total water intensity compared to last year**. This meant that the companies that the Fund invests in used less water in 2022 - in fact, the water saved was the equivalent of 495 Olympic sized swimming pools.
• Over a third less carbon in 2022
  
  The Global Sustainable Growth Fund’s underlying investments produced 36% lower carbon emissions in 2022 than in 2021. 
• Nearly £28m* of members pension savings invested in the Global Sustainable Bond Fund
  
  In August 2021, changes were made to improve the ESG profile of the Plan’s fixed income holdings within the default investment. This involved replacing the BlackRock Over 15 Year Corporate Bond Index Fund with the Global Sustainable Bond Fund. The Global Sustainable Bond Fund invests in companies with lower carbon emissions and higher ratings from a broader ESG perspective than the BlackRock fund that it replaced.

• The Global Sustainable Bond Fund = 60% lower carbon & 91% less water
  
  The companies that the Global Sustainable Bond Fund invest in have 60% lower carbon emissions and use 91% less water than companies that feature in the BlackRock Over 15 Year Corporate Bond Index**. That translates into a water saving of over 36 million bathtubs and a carbon reduction equivalent to saving over 13,000 miles of driving - or 46 trips from London to Paris.

• 8.5 MSCI score* for the Global Sustainable Bond Fund
  
  MSCI score of 8.5 (out of 10) for the Global Sustainable Bond Fund, which is an improvement on the 8.3 rating for the BlackRock Over 15 Year Corporate Bond Index Fund**. MSCI are an investment analysis company, and they rate funds based on their sustainability. This is done by assessing which companies the funds invest money in and how well those companies perform when it comes to environmental, social and governance factors.

 *Source: As 6 December 2022
**Source: All fund performance figures taken from Aon ESG statistics report, December 2022

When your pension contributions are paid every month – do you think about where your money is being invested?

What companies are you investing in? What industries do they operate in? Are those industries consciously acting in ways that could be harmful to our planet? Are those companies acting in an ethical and socially aware manner? 

If you didn’t like the answers to those questions, you might want to consider other areas to invest in.

There’s a lot to think about but thankfully, there is a positive, alternative way to invest your money…

Over the last decade, investment funds that invest money in companies which seek actively to help our environment and society have emerged – a way of investing that makes a real difference. 

These are called ESG funds – that stands for Environmental Social and Governance – meaning that the funds look to invest in companies that meet and exceed certain principles such as:
 

• addressing climate change and resource depletion 
• fighting waste, pollution and deforestation 
• promoting clean energy 
• good working conditions 
• ensuring the company has a positive effect on their community 
• avoiding investment in companies that manufacture arms, alcohol and tobacco products

The BNP Paribas Pension Governance Committee, in conjunction with the Trustees of the Plan, have carefully considered from both an investment performance and risk perspective, to ensure that it is in the best interest of the members to integrate ESG criteria into pension investments.

Integrating ESG objectives into the Plan’s investment approach makes financial sense, reflects the views expressed in the research and forms part of the Trustees’ and BNP Paribas Pension Governance Committee’s commitment to delivering value to members, both now and in the future.

Fidelity’s Workplace Investing Service Centre can talk you through the changes, answer questions about how they may affect you and explain how to make a change to your investment option should you wish to act.

Login to PlanViewer to manage your account and access information on your Plan, changing investments, transfers and much more. Make sure you’ve got the key things covered by using the PlanViewer checklist.

The information Fidelity provides is not personalised to you and you will need to make your own decision on the most appropriate actions for your circumstances.

Neither the Trustee, BNP Paribas nor Fidelity can give you financial advice regarding your pension decisions. Taking advice before you commit to a decision about your retirement could be a really valuable thing to do. Financial advisers are qualified professionals who recommend the course of action that is right for you after taking account of your overall financial and personal circumstances.

The MoneyHelper service provides an online directory of authorised advisers at https://www.moneyhelper.org.uk/en

Alternatively, you can find a list of independent financial advisers in your area at www.fca.org.uk