BNPP AM launches two new sustainable ETFs in Europe

BNP Paribas Asset Management (BNPP AM) has expanded its suite of ESG-integrated exchange-traded funds (ETFs) with the launch of two new products: the BNP Paribas Easy Sustainable Japan UCITS ETF and the BNP Paribas Easy Sustainable US UCITS ETF. These new ETFs are part of the firm's Easy Active Beta ETF range, a collection of funds designed to combine the advantages of traditional indexing with the active integration of BNPP AM's proprietary Environmental, Social, and Governance (ESG) methodology. The introduction of these ETFs reflects BNPP AM’s strategic focus on meeting the growing demand for sustainable investment solutions. The new funds are targeted at investors looking for a more focused approach to sustainability, with the flexibility to adapt to evolving regulations and labeling criteria while maintaining a low tracking error. The Active Beta ETFs provide beta exposure to mainstream benchmarks while minimizing tracking error. They also incorporate sustainability features such as the use of BNPP AM’s independent ESG scoring methodology, integration of the firm’s overall ESG approach, Paris-aligned Benchmarks (PAB) exclusions, and a carbon footprint that is 50% lower than their initial universe. Lorraine Sereyjol-Garros, Global Head of Development for ETFs and Index Funds at BNPP AM, emphasized the importance of these new products, stating, "Offering ETFs that combine a recognized ESG approach, high sustainable investment, and ambitious decarbonisation target, while providing the benefits of index-based investing, including a reasonable tracking error, will answer the increasing demand from institutional clients and distributors to integrate ESG factors in their portfolio." The benchmarks for these newly launched ETFs are the MSCI Japan Net Total Return (NTR) Index for the BNP Paribas Easy Sustainable Japan UCITS ETF and the SandP 500 NTR Index for the BNP Paribas Easy Sustainable US UCITS ETF. Both funds aim to maintain a tracking error below 2%, and they are classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). The ETFs are now listed on Euronext Paris, providing accessibility to European investors interested in sustainable investments. Marie-Sophie Pastant, Head of Index and ETF Strategies – Portfolio Management at BNPP AM, highlighted the strategic expansion of the Active Beta range, noting, "These two new launches are the natural next step of our Active Beta range. We aim to develop a new category of mutual funds that aim to be close to common benchmarks, with a forward tracking error of between 1% and 1.5%, while incorporating features Solid ESG developed by BNPP AM. These funds will be reduced to 50% of their starting world." With the launch of these new ETFs, BNPP AM continues to expand its offerings in sustainable investment solutions and provide to Investors have the tools to align their financial goals.