Alternative Investments/ESG: BNP Paribas Launches Biodiversity Focused ETF In Europe
Biodiversity refers to the variety of living species including plants, bacteria, and animals within an ecosystem.
The BNP Paribas Easy ESG Eurozone Biodiversity Leaders PAB UCITS ETF, which offers investors exposure to companies with a lower potential impact on biodiversity than their peers, listed since 29 September on Euronext Paris and Deutsche Börse Xetra exchanges. (BNP Paribas)
BNP Paribas Easy ESG Eurozone Biodiversity Leaders PAB UCITS ETF
The new thematic ETF from BNP Paribas is Paris-aligned and also classified as SFDR Article 9. Therefore, the fund additionally aligns its biodiversity objectives with the carbon reduction goals of the Paris Agreement.
The fund replicates a Euronext index (the Euronext Biodiversity Leaders PAB index) consisting of around 60 Eurozone stocks selected according to their potential impact on biodiversity, calculated using Iceberg Data Lab’s ‘Corporate Biodiversity Footprint’ score. These are selected from the universe of Euronext Eurozone 300 Index constituents according to a ‘best-in-class’ methodology that retains 30% of companies from each sector.
Companies subject to UNGC controversies or which operate in sectors such as controversial weapons, coal mining, uranium, shale gas, or tobacco production, are automatically excluded.
The fund responds to investors’ growing interest in United Nations SDG 15 that aims to ‘protect, restore and promote the sustainable use of terrestrial ecosystems.’
It features an expense ratio of 0.35%.
Denis Panel, Head of Multi-Asset, Quantitative & Solutions at BNPP AM, commented: “A quarter of the planet’s species are in danger of disappearing by 2050, and half of the world’s GDP is threatened by the progressive degradation of nature. This new ETF offers clients the opportunity to invest in companies whose potential impact on biodiversity is lower than that of their peers, while adhering to strict requirements regarding the exclusion of fossil fuels and reducing carbon intensity. The launch reaffirms BNPP AM’s position as the European leader in thematic ESG index management.”
Related Story: HSBC Launches First-Of-Its-Kind Biodiversity Screened ETF
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