How BNP Paribas integrates nature factors across its portfolios

Nature investing has moved beyond being a niche theme for specialists; it is now a material factor in credit risk, equity selection, and private market deal-making. At BNP Paribas Asset Management, this integration is not a single monolithic strategy but rather a coordinated effort across distinct asset classes. Each team approaches nature through the lens of its specific market mechanics, yet they share a common foundation: the belief that protecting and restoring natural capital is essential for long-term economic stability.

Robert-Alexandre Poujae, nature lead at BNP Paribas Asset Management:

“First, it is important to recognise that nature loss is a systemic risk. It affects the whole economy, and as universal owners, we are exposed to all those risks simultaneously. This is why we put a lot our effort in engagement to bring companies’ policies and practices into line with prevailing best practice and global agreements or frameworks, such as the Global Biodiversity Framework or the Taskforce on Nature-related Financial Disclosures, which I’m involved with. My role is about coordination and coherence, ensuring the organisation is equipped to make credible choices. For example, with Finance for Biodiversity Foundation, we are working on defining what ‘nature transition’ actually means for companies so that investors can speak the same language. If we want to scale nature investments, we need clarity and standards. Also, you can’t just launch products without a credible roadmap. So my job is to bridge the gap between high-level strategy and the day-to-day work of our investment teams, making sure they have the right data and tools.”

Adam Gibbon, natural capital lead at BNP Asset Management

“We position ourselves at the intentional positive impact end of the spectrum. We don’t just avoid the worst offenders; we derive the core economics of our transactions from protecting or restoring natural capital. I think we’re going through an economy-wide shift. Historically, the economy has turned natural capital into monetary capital through destructive processes. In the future, our conviction is that returns will come from protecting, restoring, and sustainably managing that capital – monetised through payments for ecosystem services. That’s where we invest. We take equity stakes in project developers and provide project finance for them to scale. For example, with our Brazilian developer Mombak, we buy degraded cattle pasture in the Brazilian Amazon and plant multiple native species. With Sistema Bio we finance biogas systems that capture methane from cattle manure and with Forest Carbon and Pantheon restore peatlands in Indonesia and the US. Nature is becoming a scarce resource, and value is being priced accordingly. Our funds target emerging markets because that’s where we see the biggest opportunity for high impact at lower costs. And importantly, this isn’t concessional—we aim for market-rate returns while giving investors priority access to scarce carbon credits.”

Aida Hemery, sustainability analyst Fixed Income at BNP Paribas Asset Management:

 “From a fixed income perspective, nature has been quite niche, but it’s increasingly recognised as material to credit risk. I focus on pre-seed bond markets, specifically green bonds where nature is a subset. What I look for is consistency. Does the issuer’s use of proceeds align with their broader transition strategy? Are there quantified commitments? Do they adopt disclosure standards like TNFD? We see opportunities in ecosystem restoration, flood defence, and habitat preservation. Blue bonds are an emerging area too—they focus on marine ecosystems and sustainable fisheries. Sovereign issuers are often better suited for these because they have the mandate and ability to execute projects at benchmark size. We also monitor innovative structures like debt-for-nature swaps. It’s still a small pocket of the market—maybe 10–15% of green bond proceeds—but it’s growing. For us, if a bond doesn’t meet our expectations for robust impact metrics and reporting, it’s ineligible. Rigour is key.”

Edward Lees, Co-CIO, head of Investment Team, Environmental Strategies Group at BNP Paribas Asset Management:

“When my partner and I started our environmentally focused funds in 2019, we deliberately avoided screened funds. We wanted to focus on solutions: where are companies getting their revenues from? Where are they spending their R&D dollars? We prioritise real-world outcomes. It hasn’t always been easy. Many pure-play ag-tech startups struggled, and frankly, some shouldn’t have been public. But we’ve learned. Now we focus on established companies touching agricultural security, water treatment, and circular economy. I’m frustrated by the gap between public discourse and actual capital flows. Everyone talks about biodiversity, but the money mostly goes to energy. We try to prove that positive environmental outcomes are possible in listed markets. We engage directly with CEOs and CFOs. Recently, we introduced two portfolio companies—one using algae-based fish feed—to help another reduce bycatch. That’s the kind of practical stewardship we believe in. We also do no significant harm tests and divest when necessary. It’s a daily-open fund environment, so we have to be good stewards of capital to keep investors engaged. But we’re convinced that integrating natural capital considerations is essential for long-term success."

Together, these four perspectives illustrate how BNP Paribas integrates nature factors across its diverse platforms. From Robert’s strategic coordination to Adam’s on-the-ground deployments, Aida’s bond screening, and Edward’s equity innovation, the firm demonstrates that effective nature investing requires tailored strategies for each asset class. By combining deep expertise with a commitment to real-world outcomes, BNP Paribas shows that addressing nature-related risks and opportunities is a key component of modern investment strategy