In 2017, BNPP AM introduced the sustainable dividend concept as an integral part of its voting policy in order to make board compensation policies more transparent. The issue of shareholder compensation must be addressed by investors with a commitment to offering their clients long-term responsible asset management. The responsible dividend is integral to this approach. BNPP AM is one of the first asset managers in the world to exclude tobacco from its range of open-ended investment funds. BNPP AM applied this exclusion policy as early as 2002 with the launch of its first SRI fund, having previously excluded companies operating the controversial “The wider issues around arms trade and asbestos companies. According to the fair distribution of added World Health Organisation (WHO) figures, seven million people die worldwide every year as a value within the company must direct or indirect consequence of tobacco use.* be addressed more effectively The exclusion decision responds directly to public health concerns, human rights concerns and the going forward; not only in economic cost of tobacco, which is estimated - the best interest of again by the WHO - at more than $1,000 billion per year. stakeholders such as Around 180 countries have signed the WHO Framework Convention on Tobacco Control, employees, but also for which aims to cut consumption by 30% betweennow and 2025 through the introduction of new the benefit of shareholders regulations and higher taxes. who have consciously opted * Source: http://www.who.int/mediacentre/news/releases/2017/ for long-term yield.” tobacco-control-lives/fr/ MICHAEL HERSKOVICH Head of Corporate Governance at the BNPP AM Sustainability Centre INVESTING FOR A SUSTAINABLE FUTURE 9