BNPP AM celebrates 10 years of low carbon finance initiatives

November 13, 2018

BNP Paribas Asset Management confirms its commitment to low carbon finance on the tenth anniversary of its BNP Paribas Easy Low Carbon 100 Europe® UCITS ETF[1], launched in October 2008.

BNP Paribas Easy Low Carbon 100 Europe® UCITS ETF was the first low carbon fund, offering investors an effective investment solution to reduce the carbon footprint of their investment portfolio.  It replicates the Low Carbon 100 Europe® NR, an index created and published by Euronext that contributes to financing energy transition by redirecting investments towards those companies that are most active in reducing their carbon emissions and offer the products and services required for energy transition to occur.  Euronext recently announced the exclusion of fossil fuel companies following the December rebalancing.

The pioneering Low Carbon 100 Europe® NR index meets the requirements of the Paris Agreement, signed at COP21, which aim to limit average global temperatures to less than 2°C above pre-industrial levels.  This requires green energy usage to increase and take over from fossil fuels, with all companies aiming to limit their CO2 emissions, or their indirect impact.

In accordance with this, the Low Carbon 100 Europe® NR index consists of 100 stocks considered to be the most virtuous in their sector, creating a representative basket of companies that are making an effort to adapt to energy transition with a view to achieving the below 2°C target.  Ten to fifteen of these investments are in companies that positively contribute to energy transition, not only via their carbon performance, but also via the positive impact of their products and services on the climate.

Constituents are selected by a committee of experts responsible for supervising index composition and changes.  The committee includes NGO representatives, independent environmental experts and sustainable development specialists from asset management companies and institutional investors.

Isabelle Bourcier, Head of Quantitative and Index-based Management at BNP Paribas Asset Management, comments:

“BNP Paribas Asset Management is a major player within responsible investment and is helping to increase the number of investments associated with lowering carbon emissions.  Since its launch in 2008, investment in BNP Paribas Easy Low Carbon 100 Europe® UCITS ETF represents a reduction of around 40% in greenhouse gas emissions compared with its selection universe[2].  The fund also offers a way of investing in future energy solutions, including renewable technologies or activities focused on energy efficiency”.

As at 31 October, the fund size was EUR 377 million, up 157% year on year[3].  Investors include institutions, for whom the fund aligns with Article 173 of the French energy transition law obliging institutional investors to assess the impact of their investments, as well as private banks and distribution platforms, thereby meeting the growing appetite of individuals to use their savings for meaningful purposes.

 

[1] Exchange traded fund. BNP Paribas Easy Low Carbon 100 Europe® UCITS ETF is a sub-fund of the BNP PARIBAS EASY UCITS V SICAV, registered under Luxembourg law, and is registered for distribution in the UK.

[2] Source: BNP Paribas Asset Management, as at 31/10/18. This figure is not an objective of the Low Carbon 100 Europe® NR index and can evolve over time.

​​​​​​​[3] Source: BNP Paribas Asset Management, as at 31/10/18.

BNP Paribas Asset Management is the investment management arm of BNP Paribas, one of the world’s major financial institutions.  Managing and advising on assets of EUR 557 billion as at 30 September 2018, BNP Paribas Asset Management offers a comprehensive range of active, passive and quantitative investment solutions covering a broad spectrum of asset classes and regions.  With more than 500 investment professionals and around 400 client servicing specialists, BNP Paribas Asset Management serves individual, corporate and institutional investors in 72 countries around the world.  Since 2002, BNP Paribas Asset Management has been a major player in sustainable and responsible investing.  For more information, please visit bnpparibas-am.com

BNP Paribas Asset Management UK Limited, ‘the investment company’, is authorised and regulated by the Financial Conduct Authority.  Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom.

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