BNP Paribas Launches 11 ESG-Focused ETFs on London Stock Exchange, Targeting Sustainable Growth

The launch reflects growing institutional demand for ESG-aligned products, particularly in the UK, where climate-conscious investing continues to gain momentum. All 11 ETFs are designed to meet strict environmental, social, and governance (ESG) criteria, with a focus on thematic opportunities and fixed-income markets.

Key Features Across the Portfolio

Each ETF is structured as an index-tracking product, with 10 operating as passive funds (replicating benchmarks with a maximum tracking error of 1%) and one (BNP PARIBAS EASY ESG ENHANCED EUR CORPORATE BOND) employing an active strategy. All funds reinvest income and offer daily redemption on Luxembourg business days, ensuring liquidity for investors.

Thematic Equity ETFs

1. BNP PARIBAS EASY ECPI GLOBAL ESG BLUE ECONOMY (ISIN: LU2533813296)
   Tracks the ECPI Global ESG Blue Economy Index, targeting companies driving sustainable ocean resource use (e.g., coastal protection, eco-tourism). It excludes firms with high negative ESG impacts, UN Global Compact violations, or ESG controversies. The index uses a thematic approach, prioritizing firms offering concrete solutions to environmental challenges.
2. BNP PARIBAS EASY ECPI GLOBAL ESG HYDROGEN ECONOMY (ISIN: LU2533813023)
   Follows the ECPI Global ESG Hydrogen Economy Index, focusing on companies advancing the sustainable hydrogen value chain. It screens out entities involved in coal or unconventional fossil fuels, with ESG criteria targeting clean energy, recycling, and governance.
3. BNP PARIBAS EASY MSCI JAPAN MIN TE (ISIN: LU2800573128)
   A Japan-focused ETF minimizing tracking error while applying ESG filters. It excludes companies deriving revenue from tobacco, oil, gas, or thermal coal, and aims to reduce greenhouse gas (GHG) intensity by 20% versus the MSCI Japan Index.

Fixed-Income ETFs

4. BNP PARIBAS EASY JPM ESG EMBI GLOBAL DIVERSIFIED COMPOSITE
   Available in two share classes:
   • Hedged (ISIN: LU2868144093): Targets currency risk mitigation against the fund’s portfolio exposure.
   • Unhedged (ISIN: LU1547515053): Both replicate the JPM ESG Emerging Markets Debt Index via a “Best-effort” ESG approach, prioritizing issuers with improving ESG practices and excluding entities violating UN Global Compact principles.
5. BNP PARIBAS EASY JPM ESG EMU GOVERNMENT BOND IG 10Y+ (ISIN: LU2742533636)
   Tracks a Eurozone government bond index with a 10-year maturity focus. ESG criteria apply to eligible securities but are not a determining factor in selection.
6. BNP PARIBAS EASY € CORP BOND SRI PAB 7-10Y (ISIN: LU2742532828)
   Targets investment-grade corporate bonds with 7–10-year maturities. It uses a “Best-in-universe” ESG approach, excluding high-impact sectors and ESG controversies while prioritizing issuers with strong non-financial ratings.
7. BNP PARIBAS EASY € CORP BOND SRI FOSSIL FREE ULTRASHORT DURATION (ISIN: LU2533812058)
   Covers ultrashort-duration bonds with a binding ESG integration approach. It excludes fossil fuel-related sectors and ESG controversies, aligning with a “Best-in-universe” methodology.
8. BNP PARIBAS EASY ESG ENHANCED EUR CORPORATE BOND (ISIN: LU2697596745)
   The only actively managed fund in the lineup. It seeks to improve ESG scores versus the Bloomberg Euro Aggregate Corporate Index by excluding 30% of benchmark securities, targeting GHG intensity below the benchmark, and meeting SFDR Article 2 (17) sustainability criteria.
9. BNP PARIBAS EASY LOW CARBON 100 EUROPE PAB (ISIN: LU1377382368)
   Tracks the Euronext Low Carbon 100 Europe PAB Index, aiming for a 50% reduction in GHG intensity versus the benchmark. It aligns with Paris Aligned Benchmark (PAB) targets, including a 7% annual decarbonisation goal.

Additional Products

10. BNP PARIBAS EASY MSCI WORLD SRI S-SERIES PAB 5% CAPPED (ISIN: LU1615092217)
    A global ESG equity ETF. It aligns with BNP Paribas’s Sustainable Investment Policy and PAB frameworks.

Critical Considerations for Investors

• Tracking Error: Passive ETFs carry a maximum 1% tracking error; optimised replication may increase this.
• ESG Methodology Risks: All funds reference BNP Paribas’s Sustainable Investment Policy, emphasizing GHG reduction, human rights, and minority shareholder rights. However, methodological limitations (e.g., ESG investment risk, index rebalancing) are acknowledged.
• Exclusions: Companies violating UN Global Compact principles or involved in severe ESG controversies are excluded from all indices.