EUROPE CLIMATE

CARBON OFFSET PLAN

More than a responsible investment,
a real social and environmental impact.

Our Solution

Combining carbon footprint reduction with liquidity and a tangible impact on social and environmental issues.

LIQUID INVESTMENT WITH HIGH ESG STANDARDS

LIQUID INVESTMENT WITH HIGH ESG STANDARDS

The strategy provides daily exposure to the European equity market in line with the benchmark STOXX Europe 600 NTR Index, but selecting only companies which demonstrate high Environmental, Social and Governance (ESG) standards.

CARBON REDUCTION AND OFFSETTING

CARBON REDUCTION AND OFFSETTING

Companies are also selected based on their carbon emissions and energy transition strategy. The remaining carbon footprint of the portfolio is offset every quarter through the purchase of Verified Emission Reduction certificates, issued by the Project Kasigau Corridor REDD+ in Kenya.

SOCIAL AND ENVIRONMENTAL IMPACT

SOCIAL AND ENVIRONMENTAL IMPACT

The Project protects threatened forests, the wildlife that live in them and provides communities with a sustainable and transformative development path. REDD+, Reducing Emissions from Deforestation and Degradation, is a climate change mitigation strategy introduced by the United Nations. The plus sign relates to additional benefits for the local community and biodiversity.

Combatting climate change together

From Kyoto to Paris, the major agreements over the last 30 years.
Europe Climate Carbon Offset Plan - BNP Paribas - Agreements

1992

United Nations framework convention on climate change (UNFCCC)

The UNFCCC is the first international climate agreement within the UN framework. It seeks to reach a better understanding of climate change, proposing solutions for cooperation between countries so as to limit the effects of climate change. To date, it has been ratified by 195 countries and recognises three main principles: the precautionary principle, the principle of common but differentiated responsibilities and the principle of the right to development.

For more information visit United Nations Climate Change

Europe Climate Carbon Offset Plan - BNP Paribas - Agreements

1997

Kyoto Protocol Application 2005-2020

In the mid-1990s, the signatories of the UNFCCC became aware of the need to take more stringent measures to reduce greenhouse gas emissions (GHG). In 1997, they adopted the Kyoto Protocol which sets the target for the 38 most industrialised countries in the world to reduce their overall emissions of 6 GHG by 5% compared with the levels observed in 1990. Three flexible mechanisms were put into effect to help countries achieve this: Emissions Trading (ET), Joint Implementation (JI) and the Clean Development Mechanism (CDM).

For more information visit United Nations Climate Change

Europe Climate Carbon Offset Plan - BNP Paribas - Agreements

2015

Paris Conference on climate change (COP 21) Application 2020-2030

In December 2015, 195 countries adopted the very first legally binding universal agreement on climate change, which will come into effect in 2020. The Paris Agreement lays the foundations for an international action plan aiming to limit the planet’s temperature increase to 2 degrees Celsius compared with pre-industrial levels. A key point of the COP 21 was discussion surrounding the lack of climate financing in order to achieve the 2°C objective.

For more information visit United Nations Climate Change

Europe Climate Carbon Offset Plan - BNP Paribas - Agreements

2016

17 Sustainable Development Goals (SDGs)

Adopted unanimously in September 2015 at a historic United Nations Summit, the SDGs came into effect in January 2016 for a time horizon of 2030. The SDGs initiative aims to involve all countries and civil society as well as covering all aspects of sustainable development: economic growth, social inclusion and environmental protection. The flagship objectives are to put an end to all forms of poverty, to combat inequalities and to tackle climate change.

For more information visit United Nations Climate Change

How it works

Eligible Companies: approximately 1,000 listed European equities covered by Vigeo Eiris, a global provider of ESG research and services.

LIQUID ESG

ESG Compliance Filters

Vigeo Eiris exclusion of companies: with a Vigeo Eiris ESG score in the lowest 25% in their sector or below 30/100; involved in armament, nuclear, tobacco, gambling or in other controversial activities.

BNP Paribas Asset Management exclusion of companies: with a BNP Paribas Asset Management ESG score of 9 or 10 (10 being the worst score).

Geography & Liquidity

The headquarters of companies whose equities are selected must be domiciled in one of the following countries: Germany, Austria, Belgium, Swiss Confederation, Denmark, Spain, Finland, France, Greece, Ireland, Italy, Luxembourg, Norway, Netherlands, Portugal, United Kingdom and Sweden.

The average daily volume of the equities of selected companies sold and/or bought on the financial markets observed over 1 month and 6 months must be greater than or equal to 10 million euros.

Diversification

Weighting: the weighting of each equity must be between 0% and 1%, the possible portfolios are therefore well diversified and include at least 100 equities. Note that the 1% cap must verify only when the equity portfolio is rebalanced, which happens on a quarterly basis. Some equities may gain in value afterwards taking up a higher proportion in the portfolio.

Sectoral diversification: the weighting of each sector (level 1 of the Industry Classification Benchmark or ICB standard, enabling investors to identify each company’s main activity) must not exceed a 30% difference with the sector’s weight inside the benchmark STOXX Europe 600 Index.

Performance objectives in line with European Benchmark

The expected tracking error, representing the standard deviation in the series of differences between the performances of the portfolio and of the Benchmark index, should not exceed 5% per annum vs the benchmark STOXX Europe 600 NTR Index.

Leading Energy Transition

Only companies with the best Energy Transition strategy in carbon-intensive sectors can be included in the portfolio and therefore contribute positively to the overall Energy Transition score (as measured by Vigeo Eiris).

Carbon Reduction

The final selection must have an average carbon footprint reduced by at least 50% compared with the initial universe of eligible companies.

Carbon Offset

BNP Paribas Asset Management France determines the amount of Verified Emission Reduction (VER) certificates necessary for offsetting the remaining carbon footprint of the portfolio (Scope 1 + Scope 2):

  • Scope 1 concerns the direct emissions of companies (e.g. fuel consumption)
  • Scope 2 concerns indirect emissions due to the business’s activity (e.g. electricity supplier’s fuel consumption)
  • Scope 3 concerns indirect emissions due to the use of products sold (e.g. fuel consumption by the client’s electricity supplier due to use of the product). With the available data, the CO2 emissions relating to Scope 3 are difficult to access and incomplete. Scope 3 is therefore not taken into account.

Voluntary Carbon Market

VER certificates, also known as “voluntary carbon credits”, are bought in the voluntary carbon market, which coexist with regulated trade and exchange systems within the Kyoto protocol and other regional agreements. VER certificates tend to be cheaper than the carbon credits sold in the regulated market, subject to higher demand by large energy installations.

CARBON REDUCTION & OFFSET

IMPACT INVESTING

When Carbon Offseting brings Social and Environmental Impact

The proceeds of the VER certificates are allocated to the project Kasigau Corridor REDD+ in Kenya, supporting local community, wildlife and forestry conservation. Investors benefit, through their financial contribution in a highly positive social and environmental impact project, from an enhanced brand value and reputation, which will ultimately attract the increasingly climate conscious consumer base.

Rebalancing

This investment process is repeated on a quarterly basis so as to update both equity portfolio and the amount of VER certificates to be purchased.
Rebalancing dates: beginning of March, June, September and December.

The impact of your investment

Benefits of the Kasigau Corridor REDD+ Project.

A positive climate impact

  • Protection of more than 500,000 acres of Kenyan forests under threat, securing the whole migration corridor between the Tsavo East and Tsavo West national parks.
  • The project will make it possible to offset over 1 million tonnes of CO2 per annum for the next 30 years.

Wildlife protection

  • Protection of over 300 wildlife species, including more than 2,000 endangered African elephants and other endangered species such as cheetah and grevy’s zebra.

Social co-benefits

  • Creation of more than 300 jobs, the majority of which are filled directly by local community, with 30% of the workforce being female.
  • Development of eco-tourism, agroforestry and jobs linked to parkland conservation.

A fair share of the funds generated by the VER certificates

  • A third of the income is paid back to the 4,500 landowners involved in the Project.
  • The project’s expenditures are then paid, including the salaries of over 300 local employees.
  • The remaining proceeds are split between Wildlife Works and funding local community projects, such as education scholarships and access to water initiatives.
Contributions to the United Nations’ Sustainable Development Goals

Wildlife Works

A REDD+ Project Developer and Manager.

1997

Creation of Wildlife Works

1998

Launch of the first project in a wildlife sanctuary in Rukinga, covering 80,000 acres of forest

2010

Expansion of the wildlife sanctuary to protect 500,000 acres in the Kasigau Corridor

2011

Kasigau Corridor world’s first REDD+ project to be verified under the Verified Carbon Standard (VCS) and the Climate, Community and Biodiversity Standards (CCB standards)

2016

The International Finance Corporation, from the World Bank group, selected the Project as underlying for the first “Forests Bond” ever issued

2017

Kasigau Corridor REDD+ project Winner of Best Offsetting Project by Environmental Finance

2019

The protection area now protects over 500,000 acres of forest, preserving the habitat of over 300 species and providing direct benefits for over 120,000 people

Partnership with BNP Paribas
Europe Climate Carbon Offset Plan - BNP Paribas - Logo BNPP

Check the full article here and visit About Global Markets for more information on our Global Markets Sustainable offer.

For more information visit www.wildlifeworks.com
Europe Climate Carbon Offset Plan - BNP Paribas - Logo WW

Wildlife Works counts among its main shareholders Allianz and The Kering Group, who also offsets its unavoidable emissions through the Kasigau Corridor REDD+ project.

EUROPE CLIMATE CARBON OFFSET PLAN

THE NEW NEXUS BETWEEN IMPACT INVESTING AND LIQUIDITY
Check the historical performance simulations of the plan
Click here