Response to the Energy Efficiency Financial Institutions Group report published today

Hermes Investment Management, the £28.6 billion* asset manager, and BNP Paribas Investment Partners (BNPP IP), the €514 billion asset management business of BNP Paribas Group, have today announced their support of the report Energy Efficiency – the first fuel for the EU Economy: How to drive new finance for energy efficiency investments by the Energy Efficiency Financial Institutions Group (EEFIG).


The report identifies a number of success factors, policies, market approaches and financing instruments that encourage investments and address market barriers that stand in the way of an energy efficient Europe in the buildings, industry and SME sectors. The EEFIG recommendations are well timed and supportive of EU plans for the Climate Framework to 2030, the European Fund for Strategic Investments (EFSI) and the Energy Union action plan announced this week. Furthermore, it provides clear recommendations on how to scale up finance to put energy efficiency first, which represent needed additional investment of up to €1.3 trillion in the next 30 years in building alone according to the International Energy Agency.


Saker Nusseibeh, Chief Executive, Hermes Investment Management, said: “We see energy efficiency as a cost effective way of addressing energy security and climate risks, while tapping into significant investment opportunities, therefore protecting and helping us to deliver long term risk-adjusted investment returns for our clients. It is thus our responsibility to work in cooperation with policy makers and market participants towards creating greater energy efficiency in Europe. We are committed to pursuing the implementation of the EEFIG recommendations in line with our responsible investment principles.“


Philippe Marchessaux, Chief Executive, BNP Paribas Investment Partners, said: “We are strongly committed to playing an active role in the transition to a sustainable European Energy Union, which we believe will promote energy security and efficiency across the region, as well as creating significant investment opportunities for our clients. As investors, we need a reliable, predictable and coherent policy framework, as well as adequate market-led incentives, in order to be able to invest the significant amounts of money required and fulfil our fiduciary duties. EEFIG brings together the key participants with the experience required to discuss the actions needed for increased energy efficiency investments across the EU. We believe that it is the right forum within which investors can work towards creating the necessary environment for this to take place.”


Hermes and BNP Paribas Investment Partners were among the 120 participants representing finance, policy makers, the buildings sector, industry, SMEs and energy efficiency market participants forming the EEFIG, a specialist expert working group co-convened by the European Commission and UNEP Finance Initiative (UNEP FI).

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