BNP Paribas Asset Management (‘BNPP AM’) announces the launch of an index fund focused on green, social and sustainability bonds, integrating an ESG1 approach. Listed since 7 April 2022 on Euronext Paris and Deutsche Börse Xetra, the fund is classified as SFDR2 Article 9.
This is BNPP AM’s third ETF3 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 profiles4, 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 Initiative5 (‘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, comments:
“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.”
Key fund characteristics as at 7 April 2022
Fund name BNP Paribas Easy JPM ESG Green Social & Sustainability IG EUR Bond ETF
ISIN code LU2365458814 (Cap); LU2365458731 (Dist)
Replication method Physical
Dividend policy Capitalisation; Distribution
Currency EUR
OCF(a) 0.25%
SFDR category(b) 9
AMF category(c) 1
SRRI(d) 3
(a) Ongoing charge (on an annual basis)
(b) Sustainable Finance Disclosure Regulation 2019/2088 of the European Parliament and of the Council of 27 November 2019 on information to be provided on sustainable development in the financial services sector. Article 8 - product promoting environmental or social characteristics. Article 9 - product with a sustainable investment objective.
(c) AMF (Autorité des marchés financiers) Doctrine Category 1 - commitment approach.
(d) Synthetic Risk and Reward Indicator is determined on a scale of 1 to 7 (7 being the highest level of risk). It is calculated on a periodic basis and may therefore change over time. Regular consultation of the Fund's KIID/DICI is recommended.
Footnotes
- Environmental, Social & Governance
- Sustainable Finance Disclosure Regulation
- Exchange Traded Fund
- Issuers are scored from 0 to 100 using ESG scores from third party research providers
- Climate Bonds Initiative (‘CBI’) is an international, non-profit organisation for investors that works to mobilise the bond market for solutions to climate change.
