BNP Paribas Asset Management has boosted the sustainability credentials of 18 of its ETFs with the adoption of new or amended indices.
Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM.
The ETFs concerned have assumed new ESG protocols or incorporated construction methodologies that bring them into alignment with Paris-Aligned Benchmark (PAB) standards.
Among the changes, seven ETFs tracking the MSCI SRI S-Series 5% Capped family of indices have now adopted a PAB-compliant methodology, the objective of which is specifically to reduce the carbon intensity of the index by at least 50% compared to the initial investment universe in the first year and to achieve a decarbonisation objective of at least 7% annually in subsequent years, in line with the trajectory of the Paris Agreement.
These seven funds now benefit from an SFDR Article 9 classification.
Five ETFs that were linked to the MSCI ex-CW (Controversial Weapons) index family have moved over to MSCI ESG Filtered Min TE indices. The newly adopted indices target companies with better ESG scores within their relevant investment universe and exclude companies operating in certain controversial sectors (including tobacco, coal and controversial weapons) while minimising tracking error. These five funds now benefit from an SFDR Article 8 classification.
Six ETFs aligned to proprietary in-house smart beta indices have also embraced an ESG screening approach. The funds maintain their original factor focus while additionally selecting companies with superior ESG scores and excluding companies operating in certain controversial sectors. These funds now benefit from an SFDR Article 8 classification.
Commenting on the changes, Isabelle Bourcier, Head of Quantitative & Index Management at BNPP AM, said: “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.”
She added: “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 funds impacted by the changes maintain listings on Euronext Paris, Xetra, SIX Swiss Exchange and Borsa Italiana. They are:
BNP Paribas Easy MSCI Emerging SRI S-Series PAB 5% Capped UCITS ETF
BNP Paribas Easy MSCI Europe Small Caps SRI S-Series PAB 5% Capped UCITS ETF
BNP Paribas Easy MSCI World SRI S-Series PAB 5% Capped UCITS ETF
BNP Paribas Easy MSCI Japan SRI S-Series PAB 5% Capped UCITS ETF
BNP Paribas Easy MSCI Europe SRI S-Series PAB 5% Capped UCITS ETF
BNP Paribas Easy MSCI EMU SRI S-Series PAB 5% Capped UCITS ET
BNP Paribas Easy MSCI Emerging ESG Filtered Min TE UCITS ETF
BNP Paribas Easy MSCI Europe ESG Filtered Min TE UCITS ETF
BNP Paribas Easy MSCI Japan ESG Filtered Min TE UCITS ETF
BNP Paribas Easy MSCI North America ESG Filtered Min TE UCITS ETF
BNP Paribas Easy MSCI Pacific ex Japan ESG Filtered Min TE UCITS ETF
BNP Paribas Easy ESG Low Vol Europe UCITS ETF
BNP Paribas Easy ESG Low Vol US UCITS ETF
BNP Paribas Easy ESG Momentum Europe UCITS ETF
BNP Paribas Easy ESG Quality Europe UCITS ETF
BNP Paribas Easy ESG Value Europe UCITS ETF
BNP Paribas Easy ESG Dividend Europe UCITS ETF