BNP Paribas Asset Management has announced that the BNP Paribas Easy CAC 40 UCITS ETF will now replicate the CAC 40 ESG NTR, administered by Euronext and launched on 22 March 2021.
The change means that BNPP AM now manages the first French market index fund to track this index. The index consists of 40 mainly French companies with the best ESG practices, the firm writes.
These companies, constituents of the Euronext CAC Large 60 Index, are chosen on the basis of ESG data provided by VE, part of Moody’s ESG Solutions, in accordance with the requirements of the French Ministry of the Economy & Finance’s SRI label. The index also incorporates exclusions aligned with the principles of the United Nations Global Compact and applies screening to companies involved in activities related to coal, controversial weapons and tobacco. Finally, the approach favours those companies with the best extra-financial ratings irrespective of their sector (‘Best in Universe’), by excluding a minimum of 20 per cent of the lowest rated companies in the universe. Index constituents are reviewed quarterly.
To reflect this index change, BNP Paribas Easy CAC 40 UCITS ETF will be renamed BNP Paribas Easy CAC 40 ESG UCITS ETF. The objective and strategy of the fund are also changing, in line with the methodology of this new index.
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, says: “This launch is part of our long-standing sustainable investing DNA and is testament to our innovative approach. Our long-term strategic positioning within ESG ETFs enables us to meet growing investor demand, and we are proud to offer the first index fund listed on Euronext’s new CAC 40 ESG index.”
Stéphane Boujnah, Chief Executive Officer and Chairman of the Management Board of Euronext, says: “Six months after the creation of the CAC 40 ESG Index, Euronext welcomes its the adoption by BNP Paribas Asset Management. The launch of this first index fund replicating the CAC40 ESG reflects the growing interest of investors in ESG criteria. We welcome the key role of ESG indices in accelerating the transition to more responsible and sustainable growth.”