BNP Paribas Asset Management (BNPP AM) announced today the launch of a new index fund tracking the performance of green, social and sustainability bonds.

The new ETF, BNP Paribas Easy JPM ESG Green Social & Sustainability IG EUR Bond,

replicates the JP Morgan ESG Green, Social, & Sustainability IG EUR Bond Index, consisting of euro-denominated bonds, with a focus on green bonds in line with the objectives of the Paris Agreement. The index tilts towards issuers with greater ESG qualities, and aims to provide exposure to bonds funding projects in key environmental and social categories such as renewable energy infrastructure, programs combatting unemployment, and projects that meet the UN Sustainable Development Goals (SDGs).

Sustainable bonds have rapidly emerged as a major asset class, with issuance last year surging by over 60% to nearly $1 trillion, according to a recent report on the sector by Moody’s. Green bonds account for over half of the market, with 2021 issuance exceeding $520 billion, followed by social bonds at approximately $200 billion and sustainability bonds at $179 billion.

Denis Panel, Head of Multi-Asset, Quantitative & Solutions (‘MAQS’) at BNPP AM, said:

“Growing client demand for sustainable bonds leads us to offer relevant long-term investment solutions.  This new fund expands our range of sustainable fixed income index funds and demonstrates our desire to be a key provider of thematic ESG ETFs.”

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