March 14, 2019 Read More →

BNP Paribas Asset Management tightens coal investment policies

Reuters:

BNP Paribas Asset Management, the investment management arm of the French bank, is to stop investing in companies that obtain more than 10 percent of their revenue from thermal coal.

The exclusion of such companies producing thermal coal and generating electricity from coal was announced on Thursday and will come into effect at the start of next year as part of the fund’s strategy to reduce economic risk within its portfolios as coal becomes uncompetitive as a fuel for power generation.

BNP Paribas Asset Management, which had nearly 400 billion euros ($452.6 billion) of assets under management at the end of last year, said it will exclude companies that derive more than 10 percent of their revenue from mining thermal coal and/or account for 1 percent or more of total global production.

Power generators with carbon intensity – the level of carbon emissions per unit of economic growth – above the 2017 global average of 491g of carbon dioxide per kilowatt hour (CO2/kWh) will also be excluded, it said.

“From an investment perspective the outlook for the coal industry looks increasingly uncertain as less carbon-intensive fuel sources, in particular renewables, become ever more competitive,” said Mark Lewis, global head of sustainability research at BNP Paribas Asset Management.

More: BNP Paribas fund arm to exclude some coal and mining companies

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