Industry Updates

BNP Paribas eases in two new ESG funds

Scott Longley

BNP Paribas has added to its range of Easy ETF ESG funds with two new offerings aimed at providing exposure to qualifying companies in both Europe and Japan.

The new funds are the BNP Paribas Easy MSCI Japan SRI UCITS ETF and the BNP Paribas Easy MSCI Europe SRI UCITS ETF. The annual fee for each is 0.30% and both work with physical replication of their respective indices.

BNP Paribas has been a pioneer in ESG-based ETFs and the new funds will be added to the already wide range of funds which include two SRI ETFs in the US and emerging markets a low-carbon ETF and a range of 10 other funds that exclude controversial weapons.

Isabel Bourcier, head of quantitative and index management at BNP Paribas in Paris said that investors are increasingly aware of the impact of their investments and were more and more willing to align their investments alongside their beliefs. Back in March, Bourcier told ETF Stream that millennial investors in particular "have values and they are looking for ESG to emulate those."

The funds exclude all alcohol, gaming, tobacco, nuclear, adult entertainment and GM companies. The methodology of the indices selects one quarter of the companies with the highest ESG5 ratings in each sector and region according to best-in-class principles. The index composition is reviewed quarterly.

BNP Paribas says it has €4.5bn of ESG-related assets under management across its current roster of 15 funds.

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