BNP Paribas Asset Management’s Environmental Strategies Group has published the inaugural impact report for its Clean Energy Solutions strategy. In a world of imperfect data, we describe the reasons for our pragmatic approach to measuring the strategy’s positive environmental impact.
Read the full impact report for the Clean Energy Solutions strategy
There is a long-standing debate about the role of measurement in effective decision-making.
On the one hand, the popular maxim “what gets measured, gets managed”, as cited by Canada’s Prime Minister Mark Carney1, reflects the broader view that defining clear objectives – and the progress made towards them – is essential for shaping behaviour and decision-making.
On the other hand, statistician and management consultant W. Edwards Deming warned against placing too much faith in metrics alone. He is widely credited with asserting: “It is wrong to suppose that if you can’t measure it, you can’t manage it – a costly myth.”2
One interpretation of this is that many drivers of long-term success such as trust, culture, innovation and purpose cannot easily be quantified, yet they still require active stewardship.
Taken together, these perspectives highlight a simple truth: measurement matters, but it is not the whole story. Data can bring visibility, transparency and accountability, but it should inform judgement, not replace it.
The real challenge is to measure what we can – while remaining mindful of what we cannot – and ensure the absence of perfect data does not become a reason for inaction.
A balance of transparency and credibility
This philosophy underpinned our Clean Energy Solutions’ Impact Report. Its release marks an important milestone as the strategy was announced as BNP Paribas Asset Management’s first listed equity impact strategy aligned with the Operating Principles for Impact Management (OPIM) earlier in the year.
The report establishes a baseline against which future progress can be measured and will also support target setting. It includes metrics from methodologies with varying degrees of scientific consensus and thus, where needed, includes notes of caution around data limitations.
For example, while Scope 1 and Scope 2 emissions reporting is now relatively standardised under the Greenhouse Gas Protocol,3 debate continues about avoided emissions methodologies.
Coincidingly, in our report, we acknowledge – and have omitted – data which cannot yet be meaningfully measured including the differing social impact of a tonne of carbon removed across geographies. Our approach aims to balance ambition and transparency with credibility.
The growing role of listed equities in impact investing
Listed equities are playing a growing role in impact investing. They are already the most widely used public market impact investing instrument and allocations have continued to grow since 2019, rising from $4.5 billion to $10.5 billion in 2025,4 marking a 15% compound annual growth rate.
Sustaining this momentum is essential to attracting the scale of impact capital required to meet the United Nations’s Sustainable Development Goals (SDGs).5 For context, in 2024, impact investment assets under management (AUM) totalled approximately $1.5 trillion6 yet the United Nations has estimated that some $4 trillion a year is needed to achieve the SDGs by 2030.7
Private markets reached approximately $15 trillion in AUM globally in 2024.8 Public equity markets are substantially larger, with an estimated $100 trillion in AUM,9 and therefore can meaningfully contribute toward closing this funding gap.
Against this backdrop, there is a clear imperative to further develop impact management and measurement (IMM) standards for listed equities as an asset class. Reporting, as a core component of IMM, plays a vital role in strengthening transparency and enhancing accountability.
As noted by the Global Impact Investing Network (GIIN)10: “Public documents, separate from legal and organizational documentation, such as impact reports, would be expected to provide insight into the primary elements of the theory of change [and] explaining the fund’s investment processes and results.”
Building out these reporting standards is a journey we are committed to, as candid communication regarding both capabilities and limitations is essential. Nevertheless, it is not without its challenges, especially since we found that impact reporting guidance for listed equities is comparatively less developed than for private market funds.
For example, demonstrating additionality and attribution can be difficult in public markets, and there are associated greenwashing risks. As such, continuous learning and iterative refinement of our practices remain central to our approach.
Progress depends on taking practical steps – today
Impact investing in listed equities is still evolving. Yet scale matters, and public markets offer an unmatched opportunity to mobilise capital towards the energy transition as well as broader sustainability goals.
While methodologies continue to develop and debates around metrics persist, progress depends on taking practical steps today.
This inaugural impact report on our Clean Energy Solutions strategy represents both a starting point and a commitment to transparency, continuous improvement and using data as a tool to support investment decisions which drive real-world outcomes.
By measuring what we can, acknowledging what we cannot, and remaining focused on our long-term purpose, we believe listed equity strategies can continue to play a meaningful role in accelerating the transition to a decarbonised and sustainable global economy.
[2] https://deming.org/myth-if-you-cant-measure-it-you-cant-manage-it/
[3] https://ghgprotocol.org/scope-2-guidance
[4] https://s3.amazonaws.com/giin-web-assets/giin/assets/publication/giin-stateofthemarket2025.pdf
[6] https://thegiin.org/publication/research/sizing-the-impact-investing-market-2024/
[7] https://news.un.org/en/story/2025/04/1162671
[8] https://www.spglobal.com/en/research-insights/market-insights/private-markets
[9] https://www.apolloacademy.com/about-apollo-academy/
[10] https://thegiin.org/
