Today's guest is Mark Lewis, Global Head of Sustainability Research at BNP Paribas Asset Management (BNPP AM).
BNPP AM is a global investment firm with approximately 400 billion euros under management. Mark oversees a team of analysts that, among many other responsibilities, evaluates companies and prospective investments as it relates to their sustainability. Their analysis, which measures a company’s performance according to Environmental, Social and Governance (ESG) metrics, amounts to a rating which the firm assigns to every investment. Inherent with this score is the belief that companies that have a higher ESG rating will perform better over the long term than those with a lower score, ultimately delivering greater returns for the firm’s clients.
We cover a lot in this episode, including the history and current status of SRI and ESG investing. The difference between the two, the difference between dedicated ESG funds, and incorporating ESG principles across the whole suite of investment offerings. We also have a great discussion about the path forward with the clean energy transition, ESG's role in that process and how people like you and I can help.
Enjoy the show!
You can find me on twitter @jjacobs22 or @mcjpod and email at
info@myclimatejourney.co, where I encourage you to share your feedback on episodes and suggestions for future topics or guests.
In today’s episode, we cover:
- The focus and work of BNP Paribas Asset Management
- Mark’s role in sustainability research
- Sectors of focus for Mark’s team
- How ESG is used as a lens to analyze different sectors
- BNP Paribas Asset Management’s track record of Social Responsibility Investing
- Asset management industry’s shifting focus into more SRI and ESG investments
- The thesis that ESG investing will yield a greater return over the long term
- How his firm has applied ESG into how the firm and fund managers operate
- His firm’s ESG asset rating assigned to companies
- How his firm balances return objectives, values, and sustainability considerations
- The stigma around ESG
- Reasons why ESG leads to better performing companies
- Mark’s journey to sustainability-focused asset management
- How clients are a major driver behind sustainability investing
- Mark’s view on engaging with non-sustainable companies vs. divesting
- Comparing the global economic toll brought on by COVID-19 with climate change threats
- The need to make the world more resilient and adaptable to climate change
- The opportunity around energy storage
- How individuals should think of their own habits and behavior as it relates to climate change
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