Business Report 2023

Alice Mignon: For example, we have invested in green bonds, which provide financing for projects with high environmental value. We also collaborated recently with several impact funds launched by BNP Paribas Group. One was a debt fund, the Climate Impact Infrastructure Debt Fund, which provides funding for infrastructures that accelerate the transition to a low carbon economy. Another is a social impact bond, the European Impact Bonds Fund II, which supports social innovation at the regional level, such as reuse of waste or job creation for vulnerable members of society. At BNP Paribas Cardif, we are particularly proud of our commitment to allocate an average of €1 billion annually to positive impact investments between 2019 and 2025. In 2023 alone we invested €1.7 billion in these investments.

How can clients identify responsible investment assets?

Alice Mignon: Since 2022, clients in the European Union have been asked about their preferences in terms of sustainability. Their financial advisors are then expected to take these ESG preferences into account when they recommend investments.

Bertrand Bussière: At the same time, Europe’s SFDR⁽²⁾ Sustainable Finance Disclosure Regulation (SFDR). regulation requires transparency regarding sustainability for asset managers that market financial products. This regulation establishes categories for investment products, and all information published must be made available to our policyholders.

What are the advantages for savers when they choose responsible investment products?

Alice Mignon: These solutions enable savers to choose investments aligned with their personal values and benefit from both asset growth and positive impact. Thanks to our life insurance or retirement savings solutions, they can for example support issues they believe in, such as protecting biodiversity, developing renewable energy sources, or fighting inequalities and corruption. This is clearly in line with the growing trend towards responsible consumption.Consumers see their spending choices as a way to impact the world. And savers increasingly believe that savings should be meaningful thanks to responsible choices and opportunities to help finance a more sustainable economy.

Bertrand Bussière: We see the same priorities among our distribution partners, who want to propose investment solutions matching the specific expectations of their clients, leading to an offer that is better aligned in terms of sustainability. This criteria has become a major differentiating factor in the market. For several years now, two thirds of the financial advisors surveyed say they believe that the responsibility factor is important for a fund. They also recognise the educational role they need to play.⁽³⁾ Annual survey of investment advisors by Kantar and BNP Paribas Cardif.

Our euro funds available within BNP Paribas Cardif life insurance contracts and pension savings plans, for example, are both classified as Article 8 investment vehicles under the European SFDR regulation.⁽⁴⁾ As defined in SFDR regulation: Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability related disclosures in the financial services sector.

Alice Mignon: In France, our policyholders can also consult independent labels, such as ISR, GreenFin or Finansol to identify responsible investment products – there are about 1,300 different investment vehicles offered – and identify those that best meet their goals using filters available on our websites.

What are the advantages of choosing BNP Paribas Cardif as the asset manager for sustainable investments?

Bertrand Bussière: I think one of the primary advantages is that savers benefit from the responsible management of our euro fund. For many years now, we have progressively oriented its portfolio towards decarbonised assets. In 2023, in France, 95% of the investments in our euro fund were analysed against ESG criteria. Our unit-linked product offer is also very diversified. Also in 2023, nearly 42% of the €52 billion we manage in unit-linked investments had received a sustainable label from outside independent organisations. Building on this commitment, in 2021 we joined the Net-Zero Asset Owner Alliance (NZAOA) alongside 90 international institutional investors in order to pool our forces, methodologies and ideas. The goal is to align our portfolios with the carbon neutral trajectory by 2050. This entails trajectories to reduce the carbon footprint of assets, placing priority on targeting a reduction of holdings in sectors with the highest carbon emissions, coupled with joints initiatives to dialogue with businesses to foster these issues.

Alice Mignon: We continually seek to create value for our partners and for their clients. Offering responsible investment options is an important factor in respecting our mandate to protect the savings of our policyholders over the long term. Moreover, we want to be recognised as a trusted partner. We believe it is essential to support our distribution partners to help them effectively promote responsible investment solutions for their clients thanks to better disclosure of information and transparency, enabling them to make informed choices regarding sustainability.