The asset management arm of the French bank reportedly wants to launch a sustainable investment fund that is aimed at mainland China's market.

BNP Paribas Asset Management, part of the French banking conglomerate BNP Paribas, intends to launch a socially responsible fund that is pitched at investors in mainland China.

The firm awaits allocation of quotas from Chinese authorities and did not provide a size for the fund as it has only recently received a qualified domestic limited partner licence.

“In line with the enhanced focus from mainland investors towards sustainable investing … BNP Paribas AM is the first global fund manager with a QDLP quota to offer a fund geared towards ESG [environmental, social and governance] investments” the firm was quoted by media was saying. 

The bank, along with a number of its peers, is targeting areas such as investing so as to fulfil environmental, social and governance goals. This “ESG” approach is seen as driven by investor desire to achieve non-financial outcomes, such as cutting air pollution, child exploitation or corruption, as well as monetary returns. Late last year, BNP Paribas AM extended its ban on allowing tobacco in its investments, adding to existing exclusions of asbestos and “controversial” weapons. (See that article here.)