BNP Paribas Asset Management is to stop investing in the bonds of firms operating in the oil and gas sector, according to an update of its responsible business conduct policy. The firm has almost €600 billion (US$634.18 billion) in assets under management and will be the second largest asset manager in Europe if its purchase of AXA Investment Managers is approved. NGO Reclaim Finance called on BNP Paribas to apply the same approach to other subsidiaries, including insurance arm BNP Paribas Cardif, and for Crédit Agricole to follow suit, starting with its subsidiary Amundi. “This is a historic step that confirms and reinforces the transformation underway within the BNP Paribas Group,” said Lara Cuvelier, Sustainable Investment Campaigner at Reclaim Finance. “For the first time, a giant in the asset management sector is acknowledging the scientific imperative of halting the expansion of oil and gas production by taking action on bond investments. This measure is crucial, as bonds are one of the most important modes of financing for companies in the fossil fuel sector today.” Last week, a group of beneficiaries called on US pension fund CalPERS to commit to stop buying long-dated bonds issued by US fossil fuel firm ExxonMobil. In an open letter, around 2,000 members and supporters of campaign group California Common Good warned of the financial risks of investing in bonds issued by the firm maturing in 2074. “Exxon bonds fuel oil and gas expansion and many do not mature until well past CalPERS’ 2050 target for achieving net zero. These bonds provide Exxon with unrestricted funds to continue business as usual, despite the ever-increasing systemic risks of climate change,” the letter said.
