BNP Paribas Securities Services has expanded its investment compliance screening provisions to include ESG criteria.
The firm’s outsourced investment compliance monitoring service offers automated post-trade monitoring to asset managers and owners, ensuring that they are compliant with ESG commitments and investment objectives they have set.
In the updated service, portfolios are screened against flexible criteria customised to firms’ individual ESG frameworks, with data gathered from internal and external sources. Potential criteria include ESG rating and benchmarks, the impact of controversies and exclusion from specific activities.
This service is currently available to France- and Luxembourg-domiciled investment funds, and will soon be offered to Australian and New Zealand funds. Over the course of the next two years, the company plans to roll out the product to EMEA and APAC locations as it continues to develop the platform.
Nevan Redmond, global head of product for depositary and fiduciary services at BNP Paribas Securities Services, says: “As the ESG market diversifies and matures, it is vital that investors have confidence in the sustainability-related labelling or classification of their funds. Our newly launched ESG investment screening capability is an exciting development in this journey.
“Through our independent third-party validation of ESG criteria, we can provide asset managers and owners with the critical and flexible infrastructure they need to build trust with their investors and expand their sustainability product ranges.”
