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
Photo by Muhammad Rehman on Unsplash
Latest Alternative Investment News
Digital Assets: Ledger, Maker Of Crypto Security Hardware, Raises Nearly All Of $100M Series C Round
Paris-based startup Ledger, which makes hardware wallets for cryptocurrency investors, has raised €100m ($109m) in funding, valuing the company at €1.3bn. The round was led by investors including Digital Finance…
FinTech: Cogo And Eliq Partner To Help Banking Customers Enhance The Energy Efficiency Of Their Homes
Cogo, a fintech which collaborates with banks to assist customers in decreasing their carbon footprint as a carbon footprint management firm, is partnering with Eliq, a company that specializes in…
Venture Capital: The LSP Dementia Fund Closes €260M (US$283M) To Address Dementia, One Of The Most Significant Health Crises Of Our Era
The LSP Dementia Fund has reached a final close at €260 million (US$ 283 million), surpassing its initial target of €100 million. The fund, which is managed by EQT Life…
Artificial Intelligence: The DAGGER AI Model Gives Advance Warning Of Dangerous Solar Storms
Researchers have developed an AI-based model that combines satellite data and machine learning to predict where an impending solar storm will strike on Earth, offering 30 minutes of advance warning….