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BNP Paribas Asset Management upgrades 18 ETFs to greater ESG exposure

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BNP Paribas Asset Management has announced that it is upgrading 18 of its ETFs to ESG indices and Paris-Aligned Benchmark (‘PAB’) standards, in order to enhance the responsible nature of its BNP Paribas Easy range.  

BNP Paribas Asset Management has announced that it is upgrading 18 of its ETFs to ESG indices and Paris-Aligned Benchmark (‘PAB’) standards, in order to enhance the responsible nature of its BNP Paribas Easy range.  

The changes mean that 83 per cent of BNPP AM’s index funds representing more than EUR 16 billion are now classified as SFDR Article 8 or Article 9.

Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, says: “The move towards sustainable indices, including PAB, is a decisive step and a major axis of our development, which reaffirms our ambition to position ourselves as a key player in index solutions integrating ESG and decarbonisation.  

“Since mid-2017, all of our ETF launches have focused on sustainable indices with the aim of having a predominantly responsible range.  Our offering within ESG index solutions now covers all equity and bond markets, a range of geographic areas and multiple ESG thematic investments, allowing us to offer new solutions to investors committed to a responsible approach.”

The firm writes that in addition to the SRI criteria already applied, ETFs and index funds tracking the MSCI SRI S-Series 5 per cent Capped range adopt the characteristics of Paris Aligned Benchmarks, the objective of which is specifically to reduce the carbon intensity of the index by at least 50 per cent compared to the initial investment universe in the first year and to achieve a decarbonisation objective of at least 7 per cent annually in subsequent years, in line with the trajectory of the Paris Agreement.  There are seven sub-funds in BNPP AM’s index range impacted by this development, which now benefit from an SFDR Article 9 classification.
 
ETFs and index funds tracking the MSCI ex-CW (Controversial Weapons) range are moving towards MSCI ESG Filtered Min TE indices, BNP PP AM writes.  ESG criteria are integrated by selecting issuers with better ESG scores within their relevant investment universe and by excluding certain controversial sectors (including tobacco, coal and controversial weapons) while minimising tracking error.  Five sub-funds are impacted, which benefit from an SFDR Article 8 classification.
 
The firm writes that ETFs and index funds tracking Smart Beta indices are also adopting ESG criteria, selecting issuers with better ESG scores within their relevant investment universe, and excluding certain controversial sectors.  Six sub-funds are impacted, which benefit from an SFDR Article 8 classification.
 
Alongside these index changes, BNP Paribas Easy ECPI Global ESG Blue Economy and BNP Paribas Easy ECPI Circular Economy Leaders funds have seen their SFDR classification evolve from Article 8 to Article 9, to better reflect their objectives within responsible investment.

BNP Paribas Asset Management has announced that it is upgrading 18 of its ETFs to ESG indices and Paris-Aligned Benchmark (‘PAB’) standards, in order to enhance the responsible nature of its BNP Paribas Easy range.  

The changes mean that 83 per cent of BNPP AM’s index funds representing more than EUR 16 billion are now classified as SFDR Article 8 or Article 9.

Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, says: “The move towards sustainable indices, including PAB, is a decisive step and a major axis of our development, which reaffirms our ambition to position ourselves as a key player in index solutions integrating ESG and decarbonisation.  

“Since mid-2017, all of our ETF launches have focused on sustainable indices with the aim of having a predominantly responsible range.  Our offering within ESG index solutions now covers all equity and bond markets, a range of geographic areas and multiple ESG thematic investments, allowing us to offer new solutions to investors committed to a responsible approach.”

The firm writes that in addition to the SRI criteria already applied, ETFs and index funds tracking the MSCI SRI S-Series 5 per cent Capped range adopt the characteristics of Paris Aligned Benchmarks, the objective of which is specifically to reduce the carbon intensity of the index by at least 50 per cent compared to the initial investment universe in the first year and to achieve a decarbonisation objective of at least 7 per cent annually in subsequent years, in line with the trajectory of the Paris Agreement.  There are seven sub-funds in BNPP AM’s index range impacted by this development, which now benefit from an SFDR Article 9 classification.
 
ETFs and index funds tracking the MSCI ex-CW (Controversial Weapons) range are moving towards MSCI ESG Filtered Min TE indices, BNP PP AM writes.  ESG criteria are integrated by selecting issuers with better ESG scores within their relevant investment universe and by excluding certain controversial sectors (including tobacco, coal and controversial weapons) while minimising tracking error.  Five sub-funds are impacted, which benefit from an SFDR Article 8 classification.
 
The firm writes that ETFs and index funds tracking Smart Beta indices are also adopting ESG criteria, selecting issuers with better ESG scores within their relevant investment universe, and excluding certain controversial sectors.  Six sub-funds are impacted, which benefit from an SFDR Article 8 classification.
 
Alongside these index changes, BNP Paribas Easy ECPI Global ESG Blue Economy and BNP Paribas Easy ECPI Circular Economy Leaders funds have seen their SFDR classification evolve from Article 8 to Article 9, to better reflect their objectives within responsible investment.

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