Industry Updates

BNP Paribas AM moves CAC 40 ETF to ESG index

Tracking the CAC 40 ESG index

Theo Andrew

Glass globe green ESG climate

BNP Paribas Asset Management (BNPP AM) has switched the index on its French equity ETF to one that tracks environmental, social and governance (ESG) metrics.

The BNP Paribas Easy CAC 40 UCITS ETF (E40) will now replicate the CAC 40 ESG index which was created by Euronext in partnership with Vigeo Eiris, an affiliate of Moody’s, in March.

As a result, E40, which currently houses $198m in assets under management (AUM), will change its name to BNP Paribas Easy CAC 40 ESG UCITS ETF and remain on the same ticker.

The total expense ratio (TER) will remain at 0.25%.

Taking the CAC Large 60 index as its starting point, the index identifies the 40 French companies that score best from an ESG perspective in accordance with the requirements with the French government’s socially responsible investment label.

It also excludes companies involved in coal, controversial weapons, tobacco or are in conflict with the United Nations Global Compact Principles.

The index rebalances quarterly and each issuer is capped at 10%.

Stéphane Boujnah, chief executive officer and chairman of the management board of Euronext, said: “The launch of this ETF replicating the CAC 40 ESG reflects the growing interest of investors in ESG criteria.”

BNPP AM first declared their interest to switch to the index in March, alongside Lyxor, and the move makes it the first ETF to track the index.

Last month, it was revealed French rival Amundi is set to launch an ETF that tracks the index but the strategy is yet to be listed.

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