BNP Paribas AM launches biodiversity ETF

BNP Paribas Asset Management has launched an ETF that aims to offer investors exposure to companies that have a lower potential impact on biodiversity than their peers. 

The Article 9 BNP Paribas Easy ESG Eurozone Biodiversity Leaders PAB UCITS ETF listed on the Euronext Paris and Deutsche Börse Xetra exchanges on 29 September.

It will replicates a Euronext index of about 60 stocks, which represent the top 30% of companies for biodiversity from each sector. BNPP AM said companies are chosen based on their potential impact on biodiversity as calculated by Iceberg Data Lab's ‘Corporate Biodiversity Footprint' score.

The fund has an OCF of 0.35%.

Denis Panel, head of multi-asset, quantitative & solutions at BNPP AM said: "A quarter of the planet's species are in danger of disappearing by 2050, and half of the world's GDP is threatened by the progressive degradation of nature.

"This new ETF offers clients the opportunity to invest in companies whose potential impact on biodiversity is lower than that of their peers, while adhering to strict requirements regarding the exclusion of fossil fuels and reducing carbon intensity."

The methodology for the ETF includes the exclusion of companies subject to United National Global Compact controversies or who derive more than 5% or 10% of their turnover, dependent on the case, from production of conventional arms, firearms, coal-fired electric power, the use of fossil fuels or tobacco distribution.