BNP Paribas Asset Management (BNPP AM) has said that its Easy CAC 40 UCITS ETF will now replicate the CAC 40 ESG NTR, which launched in March this year and represents the 40 mainly French companies with the best ESG practices.
Following the change, BNPP AM now manages the first French market index fund to track this index, which is administered by Euronext and launched on 22 March.
It will now be renamed the BNP Paribas Easy CAC 40 ESG UCITS ETF, while the objective and strategy will also change to reflect the new benchmark's methodology.
The companies in the CAC 40 ESG NTR index are constituents of the Euronext CAC Large 60 index and are chosen on the basis of ESG data provided by VE, part of Moody's ESG Solutions, in accordance with the requirements of the French Ministry of the Economy and Finance's SRI label.
It also incorporates exclusions aligned with the principles of the United Nations Global Compact and applies screening to companies involved in activities related to coal, controversial weapons and tobacco.
Isabelle Bourcier (pictured), head of quantitative and index management at BNPP AM, said: "Our long-term strategic positioning within ESG ETFs enables us to meet growing investor demand, and we are proud to offer the first index fund listed on Euronext's new CAC 40 ESG index."
The ETF is categorised under Article 8 of the SFDR and has an ongoing charge of 0.45%.
"Six months after the creation of the CAC 40 ESG index, Euronext welcomes its adoption by BNP Paribas Asset Management," added Stéphane Boujnah, chief executive and chair of the management board of Euronext.
"We welcome the key role of ESG indices in accelerating the transition to more responsible and sustainable growth."
