The world is changing
Adapting to its complex challenges is at the forefront of people’s minds around the globe. At BNP Paribas, a changing world offers many opportunities to work with our clients and people to shape a better planet. That’s why we choose to invest responsibly, with the world in mind…
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.
We’re all investing for our future. So why not invest our pension savings in a way that looks after the planet’s future too?
Watch our sustainable investing video.
Sustainable investing: the story so far
*as at 15 December 2021
- Plan members want sustainable investment options
In benefits surveys conducted by BNP Paribas in 2020 and 2021, Plan members indicated that they wanted the option to invest their savings in companies that hold strong Environmental, Social and Governance (ESG) standards. BNP Paribas have already made a number of ESG funds available - and intend to improve the sustainability of the Plan’s investment options now and in the future.
- £799m of members' pension savings are in sustainable investments
In September 2020, the Global Sustainable Growth Fund was introduced to the Plan and more than £600m of pension savings were moved into it. With continued investment and growth, as of 15 December 2021, there is now over £799m invested in the fund. The Global Sustainable Growth Fund replaced the Global Equity 30/70 Index Fund in 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.
- Saving nearly 1 million baths of water
Companies that the Global Sustainable Growth Fund invests in have consumed 93,684,000,000 litres less than the Companies that the equivalent benchmark fund invests in - a massive 86.4% reduction. With the average bath taking about 100 litres of water, that’s a saving of 936,840 baths or 15-minute showers worth of water.
- More than 1,200 trees saved
Between 31 and 46 trees are needed to offset just one tonne of carbon. As the Global Sustainable Growth Fund has reduced carbon emissions by 21.4% since September 2020 when compared to the Global Equity 30/70 Index Fund that equates to a saving of over 1,200 trees.
Read more about the Global Sustainable Growth Funds sustainable credentials here and how carbon offsetting is worked out here.
Addition of the Global Sustainable Bond Fund
In August 2021, another sustainable option, the Global Sustainable Bond Fund was added to the Plan’s range of funds. Currently, over £27m of pension savings are invested in the fund - and this number is growing. The Global Sustainable Bond Fund replaced the BlackRock Corporate Bond Over 15 Year Index Fund in the Plan’s three lifestyle strategies - further strengthening BNP Paribas’ commitment to sustainable investing.
Make My Money Matter
BNP Paribas signed up to Make My Money Matter and their #PensionsWithIntention ideology. Make My Money Matter are an organisation who are committed to creating a world where people and the planet are put on a par with profit - read more about the movement at www.makemymoneymatter.co.uk.
Where is your pension invested?
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.
" What’s the point in having a pension, if there isn’t a world to live in?"
There’s a lot to think about but thankfully, there is a positive, alternative way to invest your money…
What is ESG?
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
Responsible investing is the integration of Environmental, Social and Governance factors into the investment process and decision-making.
Here's why BNP Paribas choose to invest responsibly, with the world in mind.
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.
Where do I go for more information?
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.
Can I get any advice?
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