The BNP Paribas ESG Global Survey 2017 looks at the relationship between asset owners and asset managers, and how the obstacles to ESG are shifting around the world.
What's next for asset owners and managers? ESG integration is the incorporation of ESG factors into financial analysis and investment decision-making in order to enhance investment returns and mitigate risk. Asset managers and asset owners plan to double their investment in ESG driven strategies over the next two years however, asset managers are concerned about the cost of incorporating ESG factors.
Our ESG Global Survey 2017 is based on a global survey of 461 asset owners and managers conducted during February to April 2017. It looks into the relationship between asset owners and asset managers, how the obstacles to ESG are shifting, and at the different patterns of activity that are emerging around the world.
According to the report, 79% of respondents incorporate ESG, either in how they invest, as asset owners, or in terms of the products they market, as asset managers. Of those asset owners that incorporate ESG, the survey found nearly half have 25% or less invested in specific ESG strategies but plan to increase this to 50% or more over the next two years. Similarly, of those asset managers that incorporate ESG, 40% currently market 25% or less of their funds as either ESG or responsible investing funds. However, this figure is set to climb significantly over the next two years, with more than half (54%) planning to market 50% or more of their funds as ESG products in two years.
Challenges: the capability gap
The main challenges: obtaining and analysing ESG data will require new tools, resources and skills for both asset managers and owners.
The survey found that 55% of respondents (64% of asset owners and 47% of asset managers) are concerned that a lack of robust data could act as a barrier to greater adoption of ESG today, though this drops to 15% (22% of asset owners and 8% of asset managers) in two years' time.
A lack of advanced analytics is also a significant concern for both respondents, with almost a quarter (23%) citing this as a future barrier, suggesting the need to invest in technology and specialists. While the industry expects to capture data effectively within two years, the ability to draw conclusions from the data will remain a challenge. That is where smart data and ESG specialists will step in.
Asset managers: cost and product concerns
Building new resources will require investment and asset managers are worried costs will mount. Asked about their views on barriers to deeper integration of ESG across their investment portfolios, 31% of asset managers cited costs as their biggest challenge over the next two years. It was also the single most important future barrier cited by all respondents.
28% of asset managers are also concerned they do not have the ability to meet asset owners' product needs with regards to ESG. The same number foresees this being of concern in two years' time.
Alternative asset classes becoming increasingly 'ESG aware'
The study also identified a planned shift in ESG allocation over the next two years, into alternative assets. Asset managers and owners expect their investment in ESG alternative assets, including hedge funds, infrastructure, real estate and private equity and debt, to increase by 20% in two years. Conversely, ESG allocation towards public equities in developed markets – which represent almost half of ESG allocation now – is expected to fall by 26% over the same period.
Across the investment industry and around the world, there is clear recognition that ESG factors are of vital importance – to governments, regulators, and institutional investors – and ultimately to asset managers as they seek to satisfy their fiduciary duties and meet investor demand.
How can the blue economy make a difference?
What if the future of sustainable business is at the bottom of the ocean for once? Marine biodiversity contains resources that can meet the environmental challenges of many sectors. Perhaps yours, too. Find out more during an online event about the promising blue economy on 11 March 2021.
Blue is the new green
71% of our planet consists of water. Seas and oceans play a crucial role in our climate, and coastal areas can capture up to five times more CO2 than tropical forests. The blue economy wants to benefit from all these advantages to improve both the environment and our well-being,
With local being the keyword. And that's where the difference lies with the green economy, which also focuses on the environment and health, but not always in such a sustainable and smart way. Eating organically grown quinoa from Ecuador, for example, is healthy and eco-friendly, but transporting it here is expensive and creates high amounts of pollution.
What does the underwater world have to offer that can be reused, recycled or converted into new sustainable products? A lot, it turns out, as the unique properties of organisms such as algae, starfish, jellyfish or sea cucumbers can be transformed into sustainable products with high added value. This is a process that requires creativity and innovation, and is already with us today.
For your sector, too
The blue economy is expanding rapidly and could bring about a revolution in a wide range of sectors such as healthcare, food, the plastics industry, cosmetics, energy and even aerospace. It is fully capable of helping companies transform their traditional activities into a sustainable model. And in Belgium's ports, the country already has a huge advantage and excellent access to coastal and offshore areas.
Another scoop of microalgae?
Microalgae, for example, offer a lot of promise, as they can renew themselves and thrive both in the desert and in the ocean. They contain many healthy components, such as proteins, that can be used to develop food products.
When discussing the oceans, the plastic problem is never far away. Human beings are producing more and more plastic as the world's population grows, yet the problem with the existing plastic is that it's nigh on impossible to recycle as its components are hard to separate. By making a completely different type of plastic from biomass, its recycling is already considered at the design stage. A large amount of biomass remains unused in the oceans, and using smart, natural polymers could revolutionise plastic production, for example. These polymers are capable of self-renewal and can adapt to their environment.
Who will pay for it?
Great ideas, you think, but who will pay for them? The financial sector certainly wants to play a role in this revolution and is prepared to take risks and invest in new technologies, production systems and R&D.
This commitment was formalised in various ways during the climate week in New York at the end of September 2020. BNP Paribas signed the Principles for Responsible Banking (PRB) and joined the UNEP FI's Collective Commitment to Climate Action, a partnership between the United Nations Environment Programme and the financial sector. In terms of the maritime sector, the Bank committed to working with customers to preserve and sustain the oceans. Read more about this commitment here (only available in French).
Would you like to find out whether the blue economy could make a difference to your sector?
Sign up here for a free online event on this subject on 11 March 2021 (in English only), organised by BNP Paribas Fortis Transport, Logistics and Ports Chair.
What is the future for mobility post-coronavirus?
The health and economic crisis has affected all aspects of every sector. Among them, mobility, for both private individuals and for companies.
Mobility is evolving every day. And it has been driven further as a result of the coronavirus crisis. Many people have been locked down and working from home has been widespread in many parts of the world.
The coronavirus crisis has changed concerns about transport
We are no longer moving around in the same way. And concerns are no longer the same. According to a BCG Consulting report, social distancing and vehicle cleanliness are the most important aspects for 41% and 39% of respondents, respectively, when choosing a mode of transport. There is also pre- and post-Covid mobility, with respondents being more likely to choose walking, their own bicycle or scooter, or their car than before the crisis.
Sustainable and alternative mobility in the years to come
Mobility has not necessarily waited for the coronavirus crisis in order to evolve. And, according to the same report, the share of more environmentally-friendly vehicles will continue to increase. By 2035, more than 35% of new vehicles will be electric cars, becoming the predominant form of motorised transport worldwide. Autonomous cars will also become more common, with 10% of vehicles being level 4 vehicles (able to travel without a driver, for example), and 65% level 2 or higher.
Customised mobility for employees, right now
The future of mobility is also relevant now, especially for businesses and the self-employed. The need for alternative modes of transport does not only concern private individuals, but also employees. There is no longer a single mode of transport for all situations, but a range of means depending on the need at a given moment. Electric cars, hybrid vehicles, electric bicycles, a public transport season ticket, car sharing, leasing, etc. These modes can take different forms and be combined in a mobility card, for example. There are benefits for the employees and managers of a company but also for the company itself through cost reduction, optimisation and fleet management.
Find out more about our tailor-made mobility solutions
The road to alternative mobility
Nowadays, responsible fleet management is built around sustainability. We're here to help you identify and realise your Corporate Social Responsibility ambitions.
Together we can cut your company's carbon footprint, improve employee mobility, and make sure these steps become a central pillar of your company's added value. In short, our aim is to have an alternative mobility policy.
We can help you make the switch to alternative mobility and new technologies to reduce your carbon footprint. Our SMaRT approach ensures your fleet has the best energy mix to match your strategy and driver profiles.
Alternative mobility needs new technologies to go hand in hand with new infrastructure. That's why we offer not only electric cars, but also the right charging solutions, too. As part of our integrated service provision we can determine how many charging points you need, install them, and manage how they are used both at the workplace and at the driver's home.
Modern mobility management is about more than just cars or vans. You need a 360-degree approach. We'll work with you to determine your mobility strategy and needs. Greener cars are just one of the options available. We have a number of mobility management solutions (such as the Mobility Card) and alternative mobility solutions (such as bicycle leasing) to inspire your organisation to offer a more flexible range.
Focus on employees
When you put your employees at the heart of your organisation, you're in a better position to find skilled employees, satisfy them, and retain them. Go a step further than just an alternative mobility solution: focus on their safety and let them play an active role in achieving your sustainability goals. Trust us to improve their safety and integrate new technologies.
Operational leasing is offered by Arval Belgium SA/NV, with the intervention of BNP Paribas Fortis SA/NV – Montagne du Parc/Warandeberg 3, B-1000 Brussels, Brussels Register of Companies VAT BE0403.199.702.
Promotion only available from Thursday 21 January up to and including Wednesday 31 March 2021 and is only available to professional clients (self-employed, liberal professionals and SMEs) of BNP Paribas Fortis and Fintro.
The information provided here does not constitute an offer. An offer is made only after your file has been accepted and is always subject to Arval Belgium SA/NV's General Terms and Conditions.
Mobility, more than just four wheels
BNP Paribas Fortis offers complete mobility solutions. Sometimes a four-wheeled fleet is not enough for your mobility needs.
As a reliable partner, we can help you with every step – or pedal – of your mobility trajectory.
Mobility analysis and advice
Our mobility managers can work together with your relationship manager to develop a future-focused mobility strategy.
We start by listening to you: we want to understand your needs and concerns when it comes to mobility. This is our starting point for creating the best mobility solution for you and your company. We will build on this foundation with our expertise, while also taking Belgium's specific legal and fiscal ecosystem into account.
New mobility solutions
As well asfull-service leasing,we also offer our core product giving you access to our full mobility range, a wide range of basic services and added-value services such ascar parts,carpool management,bicycle leasingandmobility cards. All of our mobility services and their associated services such as parking, electric charging, fuel, tolls and car washing are within reach.
Managing your mobility budget
We'll help you and offer advice about implementing the federal mobility budget[VBK1] in your company. If that's too limited to meet your specific needs and aims, we can develop a personalised mobility budget solution to manage your mobility costs in line with the legal framework, just as we've done for a number of clients previously.
We've already implemented some tailored cost-neutral solutions, allowing our clients to combine lease cars with lease bicycles or other mobility solutions. This means the company can meet its goals while also making good on its promises and obligations.
Those ambitions might range from an ambitious CO2 agenda to a competitive offer to attract talent or a solution to solve your lack of car parking spaces.