BNP Paribas Asset Management (BNPP AM) announced today the launch of the BNP Paribas Easy MSCI ACWI SRI S-Series PAB 5% Capped UCITS ETF, a new exchange traded fund aimed at providing investors with developed and emerging markets exposure to companies with high ESG standards and with low and improving greenhouse gas emissions.

Launched as a sub-fund of the asset manager’s recently established Irish ETF platform, BNP Paribas Easy Irish ICAV, the new ETF marks an expansion of BNPP AM’s SRI PAB (Socially Responsible Investment Paris Aligned Benchmark) range, which now totals more than €6.5 billion of assets under management.

Indices that are labelled as Paris-aligned Benchmarks (PABs) under EU rules must meet criteria for asset selection that results in the index aligning with the long-term climate goals of the Paris Agreement. Criteria include a minimum reduction in greenhouse gas (GHG) emissions intensity of at least 50% compared to the market index, with annual GHG emissions intensity reductions of at least 7%.

According to BNP Paribas AM, the new ETF will seek to replicate the MSCI ACWI SRI S-Series PAB 5% Capped Index. Based on its parent index, MSCI ACWI Index, the benchmark includes large and mid-cap stocks from 23 Developed Markets (DM) and 24 Emerging Markets (EM) countries, and aims to represent the performance of companies consistent with specific values and climate change based criteria, and meeting a high level of ESG performance, such as environmental opportunity, pollution and waste, human capital, corporate governance.

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.

Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM said:

“We observe a strong interest from clients for SRI PAB ETFs and are proud to expand our range, particularly within our Irish ICAV. The aim is to capture long-term growth opportunities offered by global equities while integrating a serious and strong ESG approach. Between our already existing MSCI SRI World PAB ETF and this new ETF, clients will have access to both developed and emerging equity markets.”

The new fund, classified as Article 8 under the EU’s SFDR regulation, is listed on Euronext Paris, Borsa Italiana, SIX Swiss Exchange, and will be listed on  Deutsche Börse Xetra on May 23.