BNP Paribas Securities Services has launched ESG Risk Analytics, a new solution aimed at helping their clients integrate environmental, social and corporate governance (ESG) factors into their investment decisions.
The new tool, which is also a part of BNP Paribas corporate and institutional banking's digital strategy, is expected to provide a breakdown of how well clients' investments and benchmarks rate against ESG factors such as carbon emissions and energy usage, human rights and community relations, or broad diversity and shareholder rights.
According to BNP Paribas, it would evaluate up to 750 ESG data points for each company and subsequently this data would be used to analyse clients' portfolios providing an overall ESG score.
Also, ESG Risk analytics would offer clients a deep analysis, breaking down their portfolio to country, sector and individual security level.
General manager of BNP Paribas Securities Services, Patrick Colle, stressed that ESG was becoming an essential part of the investment decision-making process while a new tool would help institutional investors overcome obstacles.
"Putting an ESG-aware investment strategy into practice can prove difficult, with data gathering and analysis presenting some of the most testing challenges.
"Managing this data, analysing it and presenting it in a clear, concise and easily digestible way is the core of what the ESG risk analytics solution provides for clients," he said.
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