BNP Paribas Asset Management has announced it will no longer invest in new bonds issued by oil and gas exploration and production companies, aligning with the BNP Paribas Group’s broader sustainability goals. This policy builds on the group’s decision in 2023 to cease involvement in bond issuances for such companies.

The firm clarified that while it will stop purchasing new bonds, it will continue holding existing debt and equity investments under strict sustainability criteria. Companies must demonstrate “credible climate commitments and realistic transition plans” to remain eligible for investment. Regular reviews will assess compliance and encourage the adoption of lower-carbon business models.

Lara Cuvelier, Sustainable Investments Campaigner at Reclaim Finance, highlighted the significance of the move, stating, “Bonds are one of the most important modes of financing for companies in the fossil fuel sector today.”

Recognized as the first major asset manager to exclude new oil and gas bonds, BNP Paribas Asset Management has been acknowledged by Reclaim Finance for leading the charge in sustainable finance. This decision supports oil and gas companies transitioning to renewable energy while excluding those lagging behind in adopting sustainable practices.

This new policy is part of BNP Paribas’ ongoing efforts to reduce fossil fuel investments. The asset manager already restricts investments in ecologically sensitive areas like the Amazon and Arctic and avoids unconventional oil and gas resources such as shale and oil sands.

Despite this shift, BNP Paribas Asset Management currently holds $1.8 billion in equity exposure to oil and gas companies, with significant investments in TotalEnergies through 49 funds. The decision signals a broader commitment to sustainability-focused financial strategies and a push for industry-wide change.