New Listing

BNP Paribas AM adds eurozone ETF to low carbon Paris-aligned range

Offers exposure to 100 leading eurozone companies reducing CO2 emissions

Theo Andrew

a woman smiling for the camera

BNP Paribas Asset Management (BNPP AM) has launched a eurozone low carbon ETF taking its range tracking the European Union’s Paris Aligned Benchmarks to three.

The BNP Paribas Easy Low Carbon 100 Eurozone PAB UCITS ETF (LCEZ) is listed on the Euronext Paris and Deutsche Boerse (LCDE) with a total expense ratio (TER) of 0.30%.

Tracking the Euronext Low Carbon 100 Eurozone PAB NTR index, LCEZ offers exposure to the 100 leading eurozone companies that are reducing carbon dioxide emissions.

Among the 100 index constituents is a 5% allocation to green companies that generate at least half of their revenue from renewable energy or the development of low carbon technologies.

Under the PAB targets, companies will aim to reduce carbon intensity by 50%, relevant to the investment universe and an annual decarbonisation target of at least 7%.

The ETF will also exclude all companies involved with fossil-fuel activities and those with the worst social and governance scores.

The PAB’s carbon footprint measurement is based on Scope 1, 2 and 3 emissions and therefore, accounts for both direct and indirect emissions.

LCWLD is classified as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

Isabelle Bourcier (pictured), head of quantitative and index management at BNPP AM, said: “We are convinced that to be sustainable, the economy must move towards a low carbon model favouring the energy transition.  

“To meet the expectations of professional and retail investors, BNP Paribas Asset Management is extending its range with the launch of this third ETF, thereby reaffirming its leadership in index solutions focused on ESG themes.”

It is the third ETF to launch in BNPP AM’s low carbon range. Last year, the issuer aligned its low carbon Europe ETF, the BNP Paribas Easy Low Carbon 100 Europe UCITS ETF (ECN), with the PAB.

In July, the firm added the BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF (LCWLD) to its range.

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