BNP Paribas Asset Management enhances responsible index fund range

2 December 2021

BNP Paribas Asset Management (‘BNPP AM’) announces that it is upgrading 18 of its ETFs to ESG indices and Paris-Aligned Benchmark (‘PAB’) standards, in order to enhance the responsible nature of its BNP Paribas Easy range. The changes mean that 83% of BNPP AM’s range of index funds representing more than EUR 16 billion are now classified as SFDR Article 8 or Article 9.

In addition to the SRI criteria already applied, ETFs and index funds tracking the MSCI SRI S-Series 5% Capped range adopt the characteristics of Paris Aligned Benchmarks, the objective of which is specifically to reduce the carbon intensity of the index by at least 50% compared to the initial investment universe in the first year and to achieve a decarbonisation objective of at least 7% annually in subsequent years, in line with the trajectory of the Paris Agreement. There are seven sub-funds in BNPP AM’s index range impacted by this development, which now benefit from an SFDR Article 9 classification.

ETFs and index funds tracking the MSCI ex-CW (Controversial Weapons) range are moving towards MSCI ESG Filtered Min TE indices. ESG criteria are integrated by selecting issuers with better ESG scores within their benchmark investment universe and by excluding certain controversial sectors (including tobacco, coal and controversial weapons) while minimising tracking error. Five sub-funds are impacted, which benefit from an SFDR Article 8 classification.

ETFs and index funds tracking Smart Beta indices are also adopting ESG criteria, selecting issuers with better ESG scores within their relevant investment universe, and excluding certain controversial sectors. Six sub-funds are impacted, which benefit from an SFDR Article 8 classification.

Alongside these index changes, BNP Paribas Easy ECPI Global ESG Blue Economy and BNP Paribas Easy ECPI Circular Economy Leaders funds have seen their SFDR classification evolve from Article 8 to Article 9, to better reflect their objectives within responsible investment.

Source: BNP Paribas Asset Management