BNP Paribas Asset Management (BNPP AM) has launched Europe’s first ETF that offers exposure to the circular economy.

The BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF is listed on Euronext Paris with annual management charges (AMC) of 0.30%.

Tracking the ECPI Circular Economy Leaders Equity index, the ETF offers investors exposure to 50 international large-cap stocks that participate in the business model based on the circularity of goods, materials and commodities.

The circular economy refers to a business whose objective is to produce goods and services in a sustainable manner. Companies within this economy limit their consumption and waste of resources as well as the production of waste.

It is in direct opposition to the “linear economy” which extracts, produces, consumes and disposes of materials.

Robert-Alexandre Poujade, ESG analyst at BNPP AM, commented: “Awareness of the environmental impacts of their business models, regulatory changes in the preservation of resources push companies to adopt alternative development strategies towards a more virtuous model,

“Our analysts study the ability of companies to anticipate these developments, and engage with them to encourage them to adopt more sustainable models.”