BNP Paribas tool to enable investors to examine ESG risks

Tool uses 750 data points to help investors benchmark portfolios for environment, social and corporate governance issues.
By John Bakie

BNP Paribas Securities Services has launches a new risk analytics tool focused on issues surrounding environmental, social and corporate governance (ESG).

ESG Risk Analytics is intended to enable clients to integrate ESG factors more easily into the investment decision-making process.

The tool will provide a breakdown of how investments and benchmarks rate against a range of ESG factors, including carbon emissions, human rights and board diversity.

Patric Colle, general manager of BNP Paribas Securities Services, said: “ESG is becoming an essential part of the investment decision-making process.”

“However, 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.”

The system can evaluate up to 750 different ESG data points for each company in its database to provide granular detail. This data can then applied to analysis of portfolios to provide an overall ESG score and compare it to other portfolios and benchmarks.