BNP Paribas Securities Services has signed the Principles for Responsible Investment (PRI) becoming the biggest custodian to sign up to the initiative so far.
The UN-supported PRI aims to provide further guidance on economic and social governance (ESG) factors and how they can be incorporated into investments.
As part of signing up to the initiative, BNP has committed to the PRI’s six principles which include prioritising the incorporation of ESG factors into investment analysis and policies.
“As a global custodian, we have an important role to play in helping our clients adopt and integrate ESG policies and demonstrate the value these can bring to an organisation,” said Patrick Colle, general manager, BNP Paribas Securities Services.
“By signing the PRI, we are committing to continuing to develop solutions promoting responsible investing and to having a constructive dialogue with our clients on these issues.”
The signing is the latest development in a growing trend of custodian involvement within ESG factors.
In June, BNP launched an ESG Risk Analytics tool aimed at increasing the efficiency of integrating ESG factors into investments.
Global Custodian also reported in the summer a growing demand across the industry for ESG awareness and that custodians in every region are facing demands for greater incorporation of ESG factors.
Custodians are screening companies for a variety of ESG considerations varying from carbon emissions to social factors such as human rights and diversity issues.