BNP Paribas Asset Management (BNPP AM) announced today the launch of the BNP Paribas Global Net Zero Transition Equity fund, a new active fund aimed at offering investors with exposure to a decarbonization and sustainable investment focused strategy, with sector, regional and market cap diversification.

According to BNPP AM, the new fund, classified as Article 8 under the EU’s SFDR regulation, will target a high conviction portfolio selected from more than 1,000 global companies focusing on achieving net zero, including both “adopters” and “solution providers” contributing to global emissions reduction.

The investment universe is diversified by geography, size and sector, according to BNPP AM, reducing industry risk compared to the benchmark, and stock selection for the fund utilizes the firm’s proprietary net zero alignment framework,

BNPP AM added that the fund is one of the few in the market to focus on achieving net zero with a Just Transition lens, referring to the social implications of delivering a low carbon economy.

Jane Ambachtsheer, Global Head of Sustainability at BNPP AM, said: 

“The greening of the economy provides the potential to create jobs and build new industries. A “just transition” should be fair and inclusive and create decent work opportunities. It’s an important part of how investors should assess and engage with companies during this period of transition.”

The launch of the new fund follows the release by BNPP AM in January of its new Global Sustainability Strategy (GSS), which included a goal to grow its ranges of sustainable and impact investment solutions across themes including climate, nature-based solutions and economic equality, and updated the firm’s approach to applying sustainability considerations in its investments. BNPP AM also released a net zero roadmap in 2022, setting targets for 60% of in-scope investments to be Achieving, Aligned or Aligning with Net Zero by 2030, and 100% by 2040.

Nadia Grant, Head of Global Equities at BNPP AM and Portfolio Manager of the BNP Paribas Global Net Zero Transition Equity fund, said: 

“Net zero can be achieved through directing investments towards companies providing solutions and those adopting solutions to decarbonise and therefore contribute to net zero alignment. With this new equity fund, we aim to provide an innovative strategy aligned with BNPP AM Net Zero commitments while leveraging our social and environmental expertise and focusing on engagement.”