THEAM Quant Europe Climate Carbon Offset Plan is managed using a systematic investment strategy designed to capture the performance of European liquid equities with high Environmental, Social and Governance (ESG) standards and selected according to their carbon footprint and the robustness of their energy transition strategy. The fund also aims to offset the carbon footprint of this investment strategy (Scope 1 and Scope 2 emissions); this offsetting of the carbon footprint can be considered as partial
The carbon emission offset is achieved through the use of Verified Emission Reductions certificates (‘VERs’), also known as carbon credits, from the Kasigau Corridor REDD+ project. The project, based in south east Kenya, protects more than 200,000 hectares of endangered dryland forest. It was developed by the California-based company Wildlife Works and is the first REDD+ project to issue VERs. In addition to the environmental impact, the project aims to create long term jobs and promote sustainable sources of income by encouraging local communities to preserve the forest and its biodiversity.
This fund launch is a clear example of the initiatives taken by BNP Paribas Asset Management with the launch of its Global Sustainability Strategy, and more widely by BNP Paribas as a Group, relating to the fight against global warming in line with the 2°C scenario and to support the energy transition as laid out by the Paris Agreement. The Group has made a strong commitment to speeding up the energy transition, firstly by partnering with its clients in the transition to a low carbon economy, and secondly by reducing the environmental impacts of its operations. BNP Paribas has been supporting Wildlife Works since 2010 and using this project to offset its carbon footprint since it became carbon neutral in 2017.
Isabelle Bourcier, Global Head of Quantitative & Index at BNP Paribas Asset Management, comments:
“Sustainability is at the heart of our investment approach and we are proud to be launching the THEAM Quant Europe Climate Carbon Offset Plan. This is the first UCITS fund allowing institutional investors to offset a significant part of their investment’s carbon footprint.”
Neven Graillat, Chief Sustainability Product Officer, BNP Paribas Global Markets, comments:
“The management of risks relating to climate change is primordial since it helps to control the financial risk of our financing and investment arrangements. This fund launch represents a key milestone in bridging the gap between impact investing and equity investment. It is also a great example of collaboration within the Global Markets and Asset Management teams with regards to sustainable investment.”
THEAM Quant Europe Climate Carbon Offset Plan is a Fonds Commun de Placement (‘FCP’), UCITS V compliant, registered under the French law. This launch reflects the positioning of Paris as an innovative hub in terms of sustainable finance and coincides with the publication of the Autorité des Marchés Financiers’ (‘AMF’) guide on carbon offsetting by collective investment funds. The fund is managed by BNP Paribas Asset Management France and was created in partnership with BNP Paribas Global Markets, the bank’s capital markets division. BNP Paribas Cardif, the insurance subsidiary of BNP Paribas, which has just strengthened its socially responsible investment strategy initiated in 2008, is amongst the first round of institutional investors targeting the fund.
The investments in the fund are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the fund described being in risk of capital loss. For a complete description and definition of risks, please consult the last available prospectus and KIID of the fund that can be downloaded free of charge from the BNP Paribas website: www.bnpparibas-am.com.
Background
*The directive on Undertakings for Collective Investment in Transferable Securities (UCITS) is the main European framework covering collective investment schemes. For more information, please visit: https://ec.europa.eu/info/law/undertakings-collective-investment-transferable-securities-ucits-directive-2009-65-ec_en.
** Offsetting the carbon footprint of the FCP may be considered to be a partial requirement to the extent that (i) the Management Company does not take Scope 3 into account when calculating carbon emissions, and (ii) that it only offsets carbon emissions relating to the composition of the Strategy Index defined below and not those relating to financial instruments forming the assets of the FCP when a synthetic replication method is used.
