BNP Paribas AM launches a green social bond ETF

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Follows the launch of med tech and hydrogen ETFs in March

BNP Paribas Asset Management (BNP PAM) is expanding its thematic range with the launch of a green, social and sustainable bond ETF.

The BNP Paribas Easy JPM ESG Green Social and Sustainability IG EUR Bond ETF (ASRQ) is listed on 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, comprised of euro-denominated bonds from both developed and emerging markets.

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

In order to select the best ESG issuers, the index will use a scoring and selection methodology, designed to provide exposure to renewable energy infrastructure and unemployment-relieving social programs and projects that align with the objectives. United Nations Sustainable Development.

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

Denis Panel, Head of Multi-Asset, Quantities and Solutions at BNP PAM, said: “The growing client demand for sustainability bonds leads us to offer relevant long-term investment solutions.

“This ETF expands our range of sustainable bond index funds and demonstrates our commitment to being a key provider of ESG themed ETFs.”

It follows the launch of two thematic ETFs by BNP PAM last month. 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 Deutsche Boerse and Euronext Paris with total expense ratios (TER) of 0.30 %.

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