At BNPP AM, we think we must engage all our stakeholders to enhance the value of natural capital and protect it better. NATURAL CAPITAL RISKS ASSESSING THE IMPACT OF “NATURAL CAPITAL” IN OUR PORTFOLIO Companies in which we are investing today might have to pay for ecosystem services loss or for negative Taking natural capital into account in investment externalities such as air pollution or soil degradation. decisions is a complex task. The time has come for the investment community to increase its awareness increasing environmental regulations: for example, of its dependencies and impacts on natural capital, some mining projects in water scarcity areas can be and think beyond carbon. We are now measuring our considerably delayed by local authorities because of impact on climate by publishing the carbon footprint unforeseen water desalination facilities requirements. of our portfolios. We need to go further and do it for biodiversity, soils and the forest... BNPP AM started of boycotts from consumers on companies directly by focusing our assessment on water, other natural involved in deforestation. That’s why we started a capital assessments are already underway. natural capital assessment of our portfolios in 2017, leveraging on the fantastic work of the Natural We know there are obvious methodological issues Capital Coalition. regarding the aggregation of data, but we are convinced that with the help of all our stakeholders and competitors, this will be achieved over time. We are now measuring our impact on climate by publishing the carbon footprint of our portfolios. We need (1) IPBES, The assessment report on pollinators, pollination and food to go further and do it for biodiversity, production, p22 soils and the forest. INVESTING FOR A SUSTAINABLE FUTURE 21