THE CLOVER EVALUATION
In order to analyse the level of responsibility of financial products, BNP Paribas Wealth Management developed a proprietary methodology in 2010 called the Clover evaluation.
As part of the evaluation, the full range of financial instruments recommended by BNP Paribas Wealth Management are positioned on a scale of 0 to 10 clovers, by asset class, whether the products are responsible or not.
The evaluation provides a detailed set of extra-financial information on the financial instrument being analysed, in addition to but not a substitute for current regulations on sustainable finance (e.g. SFDR and MiFID ESG in the EU).
« Our goal is for our clients to have a comprehensive view of the responsible level of their investments, allowing them to consider sustainability in their decision-making alongside their desired risk and return profile.»
Eléonore Bedel
Chief Sustainability Officer
BNP Paribas Wealth Management
In countries subject to and in compliance with European regulations on sustainable finance, when it comes to the construction process of discretionary portfolios and investment offers in advisory services, products are first selected on the basis of client ESG preferences and regulatory information provided by asset management companies. This selection is carried out in accordance with the financial profile of each client. The Clover evaluation then provides additional insight into the level of responsibility of the identified products.
In other countries, the Clover methodology makes it possible to compare the level of responsibility of several investment options, within each asset class.
Individual clients can now rely on our continuously strengthened expertise and a methodology for each asset class that is:
- Progressive: it continues to adapt over time, in line with the growing consideration of sustainable development challenges in the economy, the transition of the financial sector towards sustainable finance, and related regulations;
- Independent from issuers and producers of financial instruments, created internally and verified by an external organisation;
- Holistic: it analyses a large number of criteria in different areas, promoting best practices for the environment and society;
- Demanding: with high standards for each type of financial instrument.
Our recognised expertise...
In 2023, for the first time BNP Paribas published a report on the Clover evaluation, presenting the methodologies associated with investment funds, equities, bonds and private assets, as well as a number of indicators. The report was audited by Deloitte, thus attesting to the robustness and proper application of our methodology.
The “Clover report” is an annual publication which will be audited by Deloitte every year. It presents the evaluation methodologies (and any subsequent amendments) for each asset classes, and monitors the progress of the defined indicators.
Furthermore, the Clover evaluation is a cornerstone of how we integrate sustainable development challenges at BNP Paribas Wealth Management. This year, we were applauded by the Euromoney Awards, naming BNP Paribas Wealth Management "Best Private Bank for Sustainable Development”, for the third consecutive year.
... aimed at your clients...
The assessment is carried out by BNP Paribas' analysts.
The evaluation results are then used in the customer journey starting with the client's definition of E, S and G preferences (both in MiFID ESG countries and outside the European Union - Switzerland, Middle East and Asia).
We are then able to offer our clients the products that best meet their expectations in terms of sustainability.
... and always strenghtened
Methodologies are constructed by considering the integration of ESG criteria into investment processes as well as the potential impacts of individual asset classes on society and the environment.
Through this assessment, BNP Paribas Wealth Management engages with multiple stakeholders (including asset managers, investment banks, ESG data providers) and therefore benefits from a broad view of the market.
Drawing on these relationships and on more than 15 years’ experience, our in-house evaluation teams select for each methodology and for each update (and by asset class) the analysis criteria they consider to be most relevant.
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