BNP Paribas Asset Management (BNPP AM) announced today the launch of the BNP Paribas Easy Low Carbon 100 Eurozone PAB UCITS ETF, expanding its suite of funds aimed at enabling investors to reduce the carbon footprint of their portfolios and offering exposure to energy transition opportunities.
BNPP AM’s low carbon ETF range now includes three funds, including the BNP Paribas Easy Low Carbon 100 Europe PAB UCITS ETF, launched in 2008, and the recently announced internationally-focused BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF.
The new ETF tracks the Euronext Low Carbon 100 Eurozone PAB NTR index, which selects 100 of the best-in-class eurozone companies in terms of reducing CO2 emissions, and excludes companies in certain sectors, those involved in ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. controversies, and those with the lowest SocialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. and GovernanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. scores. The index also includes a carbon footprint measurement based on Scopes 1,2, and 3, taking into account direct and indirect emissions. The index allocates at least 5% to companies that actively participate in the energy transition.
The index meets the European standards for a Paris Aligned Benchmark (PAB), which includes criteria such as fossil fuel exclusions and an annual portfolio decarbonization target of at least 7% a year. The new ETF is classified as SFDR Article 9.
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, said:
“We are convinced that to be sustainable, the economy must move towards a low carbon model favouring the energy transition. To meet the expectations of professional and retail investors, BNP Paribas Asset Management is extending its range with the launch of this third ETF, thereby reaffirming its leadership in index solutions focused on ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. themes.”
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