BNP Paribas Asset Management launches PAB-aligned biodiversity ETF

September 29, 2022

BNP Paribas Asset Management (‘BNPP AM’) announces the launch of BNP Paribas Easy ESG Eurozone Biodiversity Leaders PAB UCITS ETF[1], offering 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, this thematic fund is PAB[2]-aligned and classified as SFDR[3] Article 9.

BNP Paribas Easy ESG Eurozone Biodiversity Leaders PAB ETF replicates a Euronext 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[4].  Portfolio companies, which are Euronext Eurozone 300 Index constituents, are selected according to a ‘best-in-class’ methodology that retains 30% of companies from each sector.  Companies subject to UNGC[5] controversies or in sectors such as controversial weapons, coal mining, uranium, shale gas, or tobacco production are automatically excluded[6].

Responding to investors’ growing interest in United Nations SDG 15[7] that aims to ‘Protect, restore and promote the sustainable use of terrestrial ecosystems’, this new fund enhances BNPP AM's range of thematic ETFs, which already covers low carbon, circular economy, oceans, innovative medical technologies, green hydrogen and sustainable bonds.  It also complements BNPP AM's active management offering, including BNP Paribas Ecosystem Restoration fund, which invests in companies globally committed to restoring and preserving natural capital.

The launch of the fund additionally extends BNPP AM’s recent partnerships with Iceberg Data Lab, I Care & Consult and the CDP, to develop frameworks for analysing and measuring the potential negative impacts on biodiversity by portfolio companies.  It contributes to BNPP AM's biodiversity roadmap, a key stage of which was the recent publication of the biodiversity footprint of its investments.  More broadly, it forms part of the BNP Paribas Group’s sustainable development policy, committed to biodiversity preservation through its membership of the Act4nature initiative, aiming to mobilise companies to promote nature.

Denis Panel, Head of Multi-Asset, Quantitative & Solutions (‘MAQS’) at BNPP AM, comments:

"A quarter of the planet's species are in danger of disappearing by 2050[8], and half of the world's GDP is threatened by the progressive degradation of nature[9].  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”.

Stéphane Boujnah, Chairman of the Management Board of Euronext, comments:

“We are proud of this new collaboration with BNP Paribas Asset Management, through which we further confirm our ESG strategy and leadership, and enable investors to finance high-impact projects and companies.  Euronext welcomes the launch of this fund replicating the Euronext Biodiversity Leaders PAB index, which aims to track a diversified portfolio of Eurozone companies while taking into account their biodiversity footprint and being aligned with the Paris Agreement.”

Key fund characteristics as at 29 September 2022

Fund name   BNP Paribas Easy ESG Eurozone Biodiversity Leaders PAB UCITS ETF
ISIN Code   LU2446381555
Replication   Physical
Dividend policy   Capitalisation
Currency   EUR
OCF(a)   0.35%
SFDR Category(b)   9
AMF Category(c)   1
SRRI(d)   6

(a) Ongoing charge (on an annual basis)
(b) Sustainable Finance Disclosure Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on information to be provided on sustainable development in the financial services sector.  Article 8 - product promoting environmental or social characteristics.  Article 9 - product with a sustainable investment objective.
(c) AMF (Autorité des marchés financiers) Doctrine Category 1 - commitment approach.
(d) Synthetic Risk and Reward Indicator, determined on a scale of 1 to 7 (7 being the highest level of risk).  It is calculated on a periodic basis and may therefore change over time.  Regular consultation of the Fund's KIID/DICI is recommended.

- ENDS -

Footnotes

 

  1. ^ [1] Exchange Traded Fund (ETF)
  2. ^ [2] Paris-Aligned Benchmark
  3. ^ [3] Sustainable Finance Disclosure Regulation. Article 9 - product with a sustainable investment objective
  4. ^ [4] Methodology developed by Iceberg Data Lab to measure the biodiversity footprint of corporate, financial and sovereign assets
  5. ^ [5] United Nations Global Compact
  6. ^ [6] Companies deriving more than 5% or 10%, depending on the case, of their turnover from the production of conventional arms, firearms, coal-fired electric power, the use of fossil fuels or tobacco distribution
  7. ^ [7] Sustainable Development Goal 15: Preserve and restore terrestrial ecosystems, ensuring that they are used sustainably, sustainably manage forests, combat desertification, halt and reverse the process of land degradation and end biodiversity loss
  8. ^ [8] IPBES, 2019
  9. ^ [9] World Economic Forum: Global Risks Report 2020

BNP Paribas Easy is a Luxembourg SICAV in accordance with Directive 2009/65/EC.  Investments made in funds are subject to market fluctuations and the risks inherent in investments in transferable securities.  The value of investments and the income from them can go down as well as up, and investors may not get their full investment back.  The funds described present a risk of capital loss.  For a more complete definition and description of risks, please refer to the fund prospectus and KIID.  Before subscribing, you are advised to read the most recent version of the prospectus and KIID, available free of charge on our website www.easy.bnpparibas.com.  Past performance is no guarantee of future performance.

Risk relating to the inclusion of ESG criteria: the absence of common or harmonised ESG and sustainability criteria definitions and labels at the European level may lead to different approaches by management companies when defining ESG objectives.  It also means that it can be difficult to compare strategies incorporating ESG and sustainability criteria, as the selection and weightings applied to certain investments may be based on indicators which may share the same name, but have different underlying meanings.  When evaluating a security on the basis of ESG and sustainability criteria, the management company may also use data sources provided by external ESG research providers.  Given the evolving nature of ESG, these data sources may currently be incomplete, inaccurate or unavailable.  The application of responsible business conduct standards as well as ESG and sustainability criteria in the investment process may lead to the exclusion of the securities of certain issuers.  Consequently, fund performance may sometimes be better or worse than the performance of collective investments with a similar strategy.

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As at September 2022.

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