BNP Paribas Asset Management aligns BNP Paribas Easy Low Carbon 100 Europe UCITS ETF with new Paris Aligned Benchmark standard
BNP Paribas Asset Management (‘BNPP AM’) announces that it has adjusted the portfolio allocation of the BNP Paribas Easy Low Carbon 100 Europe UCITS ETF, following the change in index methodology. The Euronext Low Carbon 100 Europe® index, already aligned with the objectives of the Paris Climate Agreement, is now in line with the new Paris Aligned Benchmark (PAB) climate index. This change took effect on 10 July.
As part of its action plan for sustainable finance, the European Commission has defined two new types of climate indices, one promoting the climate transition (Climate Transition Benchmark) and the other aligned with the objectives of the Paris Agreement (Paris Aligned Benchmark). The Paris Aligned Benchmark (‘PAB’) imposes more stringent requirements for the exclusion of fossil fuels, aiming to reduce carbon intensity by 50% compared to the initial investment universe, as well as setting a minimum annual carbon intensity reduction of 7%.
On 10 July, Euronext changed the methodology of its Low Carbon 100 Europe® index, created in 2008, to align it with the PAB. The methodology consists of selecting 100 European stocks considered to be the most ‘virtuous’ in their sector in terms of carbon emissions. It includes up to 15 ‘green’ values identified by a committee of experts, which make a positive contribution to the energy transition.
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, comments:
“BNP Paribas Asset Management is a pioneer of the low carbon theme, and this ETF, launched in 2008, has been very successful with professional and individual European investors eager to limit the carbon footprint of their investments. With EUR 816 million outstanding as at 15 July 2020, it is the largest ETF on low carbon European stocks.”
BNPP AM is one of the three largest providers of ESG ETFs in Europe1, with the BNP Paribas Easy range of ETFs and index funds totalling EUR 6.2 billion2. The BNP Paribas Easy ETF range was also the first to obtain the French state SRI label, in 2019. The range includes 19 SRI-labelled ETFs, six with the French state SRI label and 13 with the Belgian ‘Towards Sustainability’ label.
KEY CHARACTERISTICS OF BNP PARIBAS EASY LOW CARBON 100 EUROPE UCITS ETF
Name BNP Paribas Easy Low Carbon 100 Europe UCITS ETF
ISIN code LU1377382368
Dividend policy Capitalisation
Replication method Physical
OCR* 0.30%
SRRI** 6
Value as at 30 June 2020 EUR 790m
* The Ongoing Charge Rate (‘OCR’) is the current charge known on the date mentioned in the table. It is advisable to refer to the most recent prospectus for current management fees. Subscription and redemption fees indicate a maximum for subscriptions/redemptions in cash on the primary market for authorised participants. In some cases it is possible to pay less. Investors can obtain the actual amount of subscription and redemption fees from their advisor or financial intermediary. The conditions applicable to purchases and sales on the secondary market are those applicable to this market and to your intermediary. Redemption or subscription fees should not be applied to you. The mediation fees paid depend on the intermediary (execution, custody etc).
** The Synthetic Risk & Reward Indicator (‘SRRI’) is measured on a scale of 1 to 7 (with 7 being the highest level of risk). It is subject to periodic calculation and can therefore change over time. Regular consultation with the KIID is recommended.
BNP Paribas Easy is a SICAV under Luxembourg law in accordance with Directive 2009/65 / EC. Investments in funds are subject to market fluctuations and the risks inherent in investments in transferable securities. The value of investments and the income they generate can go down as well as up, and investors may not get back their entire investment. The funds described present a risk of capital loss. For a more complete definition and description of the risks, please refer to the fund's prospectus and KIID available free of charge on our website: www.easy.bnpparibas.co.uk. Past performance is not an indication of future performance.
- ENDS -
Footnotes
- Environmental, Social & Governance. Source: ETFGI, 30 June 2010
- Source: BNP Paribas Asset Management, 30 June 2020
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About BNP Paribas Asset Management
BNP Paribas Asset Management (‘BNPP AM’) is the investment arm of BNP Paribas, a leading banking group in Europe with international reach. BNPP AM aims to generate long-term sustainable returns for its clients, based on a sustainability-driven approach. BNPP AM’s investment capabilities are focused around five key strategies: High Conviction Strategies, Private Assets, Multi-Asset and Systematic & Quantitative Investments (SQI), Emerging Markets and Liquidity Solutions, with investment processes incorporating quantitative and fundamental analysis.
Sustainability is core to BNPP AM’s strategy and investment philosophy. Among the leaders in thematic investment in Europe1, BNPP AM intends to contribute to the energy transition, environmental sustainability and the promotion of equality and inclusive growth globally. BNPP AM currently manages EUR 526 billion of assets (EUR 641 billion of assets under management and advisory) and benefits from the expertise of more than 500 investment professionals and around 400 client servicing specialists, serving individual, corporate and institutional clients in 68 countries.
Source: BNPP AM, as at 31 March 2023
1 Source: 2nd in Europe for active sustainable thematic strategies, according to BNP Paribas Asset Management analysis based on Morningstar data as at 31/12/2022.
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