BNP Paribas Asset Management (‘BNPP AM’) announces the launch of 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.
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 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, 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
ISIN code LU2365458814 (Cap); LU2365458731 (Dist)
Replication method Physical
Dividend policy Capitalisation; Distribution
SFDR category(b) 9
AMF category(c) 1
 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.
(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.
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BNP Paribas Asset Management
+44 (0)20 7827 356 890
About BNP Paribas Easy
BNP Paribas Easy is a Luxembourg SICAV in accordance with Directive 2009/65/EC. Investments made in funds are subject to market fluctuations and the risks inherent in investments in transferable securities. The value of investments and the income from them can go down as well as up, and investors may not get their full investment back. The funds described present a risk of capital loss. For a more complete definition and description of risks, please refer to the fund prospectus and KIID. Before subscribing, you are advised to read the most recent version of the prospectus and KIID, available free of charge on our website www.easy.bnpparibas.com. Past performance is no guarantee of future performance.
Risk relating to the inclusion of ESG criteria: the absence of common or harmonised ESG and sustainability criteria definitions and labels at the European level may lead to different approaches by management companies when defining ESG objectives. It also means that it can be difficult to compare strategies incorporating ESG and sustainability criteria, as the selection and weightings applied to certain investments may be based on indicators which may share the same name, but have different underlying meanings. When evaluating a security on the basis of ESG and sustainability criteria, the management company may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may currently be incomplete, inaccurate or unavailable. The application of responsible business conduct standards as well as ESG and sustainability criteria in the investment process may lead to the exclusion of the securities of certain issuers. Consequently, fund performance may sometimes be better or worse than the performance of collective investments with a similar strategy.
About BNP Paribas Asset Management
BNP Paribas Asset Management (‘BNPP AM’) is the investment arm of BNP Paribas, a leading banking group in Europe with international reach. BNPP AM aims to generate long-term sustainable investment returns for its clients, based on a unique sustainability-driven philosophy. BNPP AM’s investment capabilities are focused around five key strategies: High Conviction Strategies, Private Debt & Real Assets, Multi-Asset, Quantitative & Solutions (MAQS), Emerging Markets and Liquidity Solutions, with investment processes incorporating quantitative and fundamental analysis.
Sustainability is embedded within BNPP AM’s strategy and investment decision-making. Among the leaders in thematic investment in Europe, BNPP AM contributes to the energy transition, environmental sustainability and the promotion of equality and inclusive growth. BNPP AM currently manages EUR 537 billion of assets (EUR 669 billion of assets under management & advisory) and benefits from the expertise of around 500 investment professionals and over 400 client servicing specialists, serving individual, corporate and institutional clients in 69 countries.
Source: BNPP AM, as at 31 December 2021
BNP PARIBAS ASSET MANAGEMENT UK Limited, ‘the investment company’, is authorised and regulated by the Financial Conduct Authority. Registered in England No: 02474627, registered office: 5 Aldermanbury Square, London, England, EC2V 7BP, United Kingdom.
This material is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
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Whilst the fund described herein has been established as a UCITS (in accordance with the UCITS Directive) in Luxembourg, it has not been registered in the UK, therefore the promotion of this fund and the distribution of this document in the UK are accordingly restricted by law.
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As at April 2022.