Jakarta – PT BNP Paribas Asset Management has officially launched the BNP Paribas Indonesia ESG Equity Mutual Fund (Mutual Fund). Through this new equity fund, PT BNP Paribas AM invites Indonesians to support the collective efforts to preserve environmental and social sustainability for the future, through investments that not only consider sustainability aspects, but also have clear and transparent measurement criteria.
The presence of BNP Paribas Indonesia ESG Equity strengthens PT BNP Paribas AM’s commitment to support sustainability in order to create a better world for future generations. BNP Paribas Indonesia ESG Equity is the 3rd ESG-based mutual fund launched by PT BNP Paribas AM, and aims to make a positive contribution to the environment, social and governance through the selection of stocks in the mutual fund portfolio.
Priyo Santoso, President Director of PT BNP Paribas Asset Management explains, “The application of ESG in our investments is not just a theme. This is our realization to encourage investor participation towards a sustainable and inclusive economic system by supporting the Government’s program to achieve the Sustainable Development Goals (SDGs) through 3 main focuses, namely: Low carbon energy transition, Environmental Stability, and Equality & Inclusive Growth. This mission is reflected through the ESG methodology that we apply in our ESG-based funds.”
The investment selection process used in BNP Paribas Indonesia ESG Equity refers to the company’s global ESG integration principles and guidelines, whereby the investment management team will integrate the consideration of relevant ESG factors into their investment decision making.
Therefore, BNP Paribas Indonesia ESG Equity will tend to place its investments in the stocks of issuers that have a high level of concern and implement good practices in terms of Environmental, Social and Governance. This selection is made to avoid exposing investors to business practices that could potentially be involved in controversial activities, which could negatively impact the performance of the company’s shares.
“Through the BNP Paribas Indonesia ESG Equity Mutual Fund, we also invite investors to monitor the contribution of their investment to ESG aspects, through two indicators that we produce, namely the ESG Score and the Carbon Footprint of the mutual fund. Unlike other ESG products, we disclose the results of this measurement transparently and periodically, and will be listed in the Fund Fact Sheet issued every month.” Priyo explained.
ESG Score and Carbon Footprint are calculated at the overall mutual fund portfolio level, where ESG Score is a relative score that shows a company’s contribution to environmental (E) social (S) and governance (G) aspects. Meanwhile, the Carbon Footprint shows the carbon emissions generated by a company both directly and indirectly, and is calculated in tons of CO2 per year. With this measurement, PT BNP Paribas AM aims to invite investors to work together with issuers in the capital market towards more responsible and sustainable business practices.
PT BNP Paribas AM’s strong commitment to be at the forefront of voicing the importance of sustainability has been reflected in the steps taken to support a more sustainable and inclusive economy, both in terms of investment solutions and education. BNP Paribas Indonesia ESG Equity is the fourth sustainability-themed mutual fund managed by the Company, after PT BNP Paribas AM became the first in the industry to introduce a combination of ESG integration with Sharia principles in 2016.
Based on IDX data, at the end of 2022 PT BNP Paribas AM also recorded the highest managed funds in the scope of onshore equity mutual funds that carry the theme of sustainable investment, through BNP Paribas SRI Kehati (with total managed funds of IDR 1.981 Trillion as of December 2022). PT BNP Paribas AM now manages 4 mutual funds with a sustainable theme with a total AUM of IDR 5.58 Trillion as of March 2023.
Currently, BNP Paribas Indonesia ESG Equity is available on various digital platforms, namely Bareksa and Bareksa Prioritas, IPOT, and Pluang. Going forward, the fund will be available in more bank and non-bank distribution partners to reach more investors.
“We believe ESG-based investment is the right choice that can be done now, especially for the younger generation as the Future Makers, for a better future. As investors, we choose to give voice and influence through our investments, namely through ESG-based investments, so that issuers in the Indonesian capital market can have a positive and sustainable impact for generations to come.” Priyo concluded.