BNP Paribas Launches ESG ETFs with 50% Reduced Carbon Footprint for Japan and US Markets
- BNP Paribas introduces two ESG Active Beta ETFs targeting Japan and US markets.
- Innovative ETFs combine traditional indexing with BNPP AM’s proprietary ESG methodology.
- Funds aim for sustainability with low tracking error and compliance with evolving regulations.
BNP Paribas Asset Management (BNPP AM) has launched two new equity funds under its Active Beta exchange-traded funds (ETFs) range: the BNP Paribas Easy Sustainable Japan UCITS ETF and the BNP Paribas Easy Sustainable US UCITS ETF. These funds began trading on Euronext Paris on September 3 and will be listed on Deutsche Börse Xetra later this month.
The BNP Paribas Easy Active Beta ETFs offer a unique blend of traditional indexing and active ESG integration, designed for investors looking to align with sustainable practices. These funds maintain a low tracking error while incorporating BNPP AM’s independent ESG scoring methodology. This approach ensures that the ETFs can adapt swiftly to regulatory changes and sustainability criteria, making them a robust choice for sustainability-focused investors.
Marie-Sophie Pastant, Head of Index & ETF Strategies – Portfolio Management at BNPP AM, explains the strategy behind these launches: “Our aim is to develop a new segment of equity funds that stay close to mainstream benchmarks, with a tracking error between 1% to 1.5%, while integrating strong ESG features. These funds will reduce their carbon footprint by 50% from their starting universe.”
Fund Details:
- BNP Paribas Easy Sustainable Japan UCITS ETF is an Article 8 fund under SFDR regulation, targeting a minimum of 55% sustainable investment while tracking the MSCI Japan Net Total Return Index.
- BNP Paribas Easy Sustainable US UCITS ETF also classified as Article 8, aims for at least 45% sustainable investment, mirroring the S&P 500 Net Total Return Index.
Both ETFs are aligned with sustainable labels such as the French SRI label and the Toward Sustainability label. Lorraine Sereyjol-Garros, Global Head of Development for ETFs & Index Funds at BNPP AM, highlights the firm’s commitment: “Our ambition is to offer a comprehensive range of ESG & SRI ETFs that meet diverse investor needs across sustainable investing. These new ETFs provide a recognized ESG approach with significant sustainable investment targets, catering to the growing demand for ESG factors in portfolios.”
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BNPP AM continues to lead in sustainable investing, managing over EUR 51.9 billion in ETFs and index funds, with 90% of its range classified under SFDR Article 8 or 9. More than 70% of these funds also carry a European sustainability label, reflecting the firm’s dedication to integrating ESG principles across its offerings.
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