BNP Paribas’ Securities Services business has launched its ESG investment compliance monitoring service in Australia and New Zealand, aiming to help local clients meet their ESG commitments and investment objectives while avoiding compliance breaches.
The service, already successful in Europe, equips local asset managers and owners with ESG investment compliance screening tools, enabling the integration of customisable ESG criteria into portfolio monitoring.
The service screens portfolios based on flexible ESG criteria tailored to each client’s framework by utilising a broad range of data from internal and external sources. Clients can select various options, such as the inclusion or exclusion of specific activities, ESG ratings, carbon intensity comparisons, and adherence to global standards. The automated post-trade assessment provides external assurance that funds meet their ESG commitments.
This launch comes at a time of growing market developments, with Australia’s Treasury recently releasing a Sustainable Finance Roadmap and New Zealand’s 2030 roadmap outlining plans for a sustainable finance taxonomy.
“Ensuring portfolios adhere to their ESG guidelines is critical to help avoid compliance oversights and this is where BNP Paribas’ ESG monitoring solution can assist,” said Daniel Cheever, Head of Australia & New Zealand, Securities Services at BNP Paribas.
Globally, BNP Paribas Securities Services handles investment compliance for over €2.7 trillion in client assets across 19 locations and more than 10,000 funds and mandates, serving clients such as insurance companies, pension funds, and asset managers. The ESG monitoring service will continue expanding to other regions in EMEA and APAC.
“This global product provides an opportunity for our clients to better monitor their portfolios amongst the evolving landscape of sustainable finance. We are delighted to be launching this enhanced ESG monitoring service into Australia and New Zealand for the benefit of our local clients,” said Cheever.