BNP Paribas Asset Management (‘BNPP AM’) has launched an index fund focused on green, social and sustainability bonds, integrating an ESG approach.
Listed since 7 April 2022 on Euronext Paris and Deutsche Börse Xetra, the fund is classified as SFDR Article 9.
The firm writes that this is BNPP AM’s third ETF launch since the start of the year and continues the development of its sustainable and thematic index fund range, including low carbon, circular economy, blue (i.e. ocean) economy, green real estate and sustainable infrastructure, as well as medical technology and green hydrogen, launched in March.
BNP Paribas Easy JPM ESG Green Social & Sustainability IG EUR Bond ETF replicates the JP Morgan ESG Green, Social, & Sustainability IG EUR Bond Index, consisting of euro-denominated bonds from both developed and emerging markets, with a focus on green bonds aligned with the objectives of the Paris Agreement. The index uses a rating and selection methodology to select issuers with the best ESG profiles, and offers exposure to bonds designed to provide direct and measurable exposure to activities funding projects in the following areas:
• Environmental, such as renewable energy infrastructure.
• Social, such as programmes to combat unemployment.
• A combination of environmental and social, through projects that meet the UN’s Sustainable Development Goals (‘SDGs’).
Constituent selection is based on the Climate Bonds Initiative (‘CBI’) database. Bonds issued by non-sovereign issuers that do not respect the principles of the United Nations Global Compact (‘UNGC’) or derive revenue from thermal coal, tar sands, tobacco or weapons are excluded from the index.
Denis Panel, Head of Multi-Asset, Quantitative & Solutions (‘MAQS’) at BNPP AM, says: “Growing client demand for sustainable bonds leads us to offer relevant long-term investment solutions. This new fund expands our range of sustainable fixed income index funds and demonstrates our desire to be a key provider of thematic ESG ETFs.”
