The BNP energy transition fund is an excellent case study when seeking an opportunity for transition to renewable energy. The Fund aims to participate in the transition of fossil fuel companies into a sustainable world by focusing on energy transition challenges while embracing innovation. We were pleased to see ESG fully integrated into the investment process with a robust global sustainability strategy.

Stewardship was also impressive in terms of policies and local-level engagement as part of a comprehensive ESG integration framework. This practice was overseen by an environmental validation committee that focuses specifically on ESG and financial performance. High marks were given for the exact definition of materiality and selection of metrics, including a systemic ESG information gathering process for the over 60 ESG champion portfolio companies and an ESG tilt towards carbon emissions and controversies. Other rigor was added through scenario analysis and the reporting of impact indicators quarterly in the Climate and ESG Reporting.

The Fund has generated excellent performance with +301 basis points on a 3Y annualized net return vs. a non-ESG benchmark., showing how ESG quality's insistence does not compromise returns.

This Fund has been reviewed by eight industry veterans of the Benchmark judging committee.