BNP Paribas Asset Management (BNP PAM) has expanded its thematic range with the launch of a green, social and sustainability bond ETF.

The BNP Paribas Easy JPM ESG Green Social and Sustainability IG EUR Bond ETF (ASRQ) is listed on the Euronext Paris and Deutsche Boerse with a total expense ratio (TER) of 0.25%.

The ETF tracks the JP Morgan ESG Green, Social and Sustainability IG EUR Bond index, comprising euro-denominated bonds from both developed and emerging markets.

It will also target green bonds aligned with the objectives of the Paris Agreement. The ETF will be labelled Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

In order to select the best ESG issuers, the index will use a rating and selection methodology, designed to provide exposure to renewable energy infrastructure and social programmes to combat unemployment and projects that align with the United Nation’s Sustainable Development Goals.

Furthermore, selection will be based on the Climate Bonds Initiative (CBI) while companies that receive revenue from thermal coal, tar sands, tobacco or weapons will be excluded.

Denis Panel, head of multi-asset, quantitative and solutions at BNP PAM, said: “Growing client demand for sustainable bonds leads us to offer relevant long-term investment solutions. 

“This ETF expands our range of sustainable fixed income index funds and demonstrates our desire to be a key provider of thematic ESG ETFs.”

It follows the launch of two thematic ETFs by BNP PAM last month. The BNP Paribas Easy ECPI Global ESG Med Tech UCITS ETF (ASRP) and BNP Paribas Easy ECPI Global Hydrogen Economy UCITS ETF (ASRS) are also listed on the Deutsche Boerse and Euronext Paris with total expense ratios (TERs) of 0.30%.

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