BNP Paribas Asset Management broadens low carbon range with third ETF launch

13 October 2021

BNP Paribas Asset Management (‘BNPP AM’) announces the launch of BNP Paribas Easy Low Carbon 100 Eurozone PAB UCITS ETF, a tracker fund that meets European standards for Paris Aligned Benchmark (‘PAB’) indices and offers investors a solution to reduce the carbon footprint of their portfolios.

A pioneer in low carbon ETFs, BNPP AM launched its first such fund in 2008, BNP Paribas Easy Low Carbon 100 Europe PAB® UCITS ETF, now valued at almost EUR 1 billion. BNPP AM also recently launched a similar fund tracking a global equity universe, BNP Paribas Easy Low Carbon 300 World PAB® UCITS ETF.

BNPP AM has now launched a low carbon Eurozone equity ETF, BNP Paribas Easy Low Carbon 100 Eurozone PAB® UCITS ETF. This new PEA eligible ETF has been continuously listed since 12 October 2021 on Euronext Paris and Deutsche Börse Xetra. It replicates the Euronext Low Carbon 100 Eurozone PAB NTR index, administered by Euronext.

The index selects 100 of the leading eurozone companies in terms of reducing CO₂ emissions, according to a best in class approach, while excluding companies involved in certain business sectors, ESG controversies and those with the worst Social and Governance scores.

Those companies actively participating in the energy transition, through the quality of their carbon performance and the positive climate impact of their business, represent at least 5% of the index. These ‘green companies’ are selected by a committee of experts that oversees the composition and development of the index.

Aligned with the goals of the Paris Agreement to limit global warming to 1.5° C by 2050, the index meets the European PAB standards, in particular requiring:

compliance with strict requirements regarding the exclusion of fossil fuels (coal, oil and natural gas)

a reduction in the carbon intensity of the index by at least 50% compared to its initial investment universe

a portfolio decarbonisation target of at least 7% a year.

The index also includes a carbon footprint measurement based on scopes 1, 2 and 3, taking into account direct and indirect emissions.

BNP Paribas Easy Low Carbon 100 Eurozone PAB® UCITS ETF uses a methodology based on a significant commitment to ESG and is classified as SFDR Article 9.

Source: BNP Paribas