Asset managers hunt for developer of ESG data tool

Written by Michael Griffiths

28/01/2020

AXA Investment Managers, BNP Paribas Asset Management, Mirova and Sycomore Asset Management have collectively launched a call for a partner to develop and implement an innovative tool that could measure the impact of investments on biodiversity.

The coalition of asset managers have indicated they strongly believe preserving the planet’s biodiversity is an ‘urgent priority,’ and their goal is to find a player capable, on a large scale, of measuring companies’ biodiversity impact.

AXA IM, BNPP AM, Mirova, and Sycomore AM all suggested there is growing interest in quantitative indicators among regulators, investors, and their clients because these indicators can be used to measure the impact of investments – particularly environmental impact, in order to obtain concrete portfolio sustainability assessments.

The group highlighted that since COP 21 in 2015, the number of tools available has multiplied – with tools now measuring carbon impact, and the extent that portfolios are in line with the 2°C trajectory, as well as others – but noted that these assessments remain ‘largely focused’ on climate change.

However, the coalition suggested it is equally important to preserve species and ecosystems, adding that one million species are facing extinction.

The four asset managers have joined forces to raise awareness in the financial community and develop the necessary tools for investors to respond to the threat to biodiversity.

The coalition of asset managers revealed they are looking to work with an ESG data provider that can develop and implement a methodology for measuring the impact of a company’s activity on biodiversity.

Julien Foll from AXA IM, Robert-Alexandre Poujade from BNPP AM, Sarah Maillard from Mirova and Jean-Guillaume Péladan from Sycomore AM issued a joint statement, saying: “It is critical that we begin to take into account biodiversity-related challenges.

“We believe it is crucial that the financial community addresses this issue in the same way that it has addressed climate change. We hope that the tool we develop will be used by all market players, and that it will become a benchmark tool.”

The group said it would assess providers based on the quality and transparency of their approach, as well as on their experience in processing environmental data – and added that applications may be submitted through March 31.

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