The asset manager for a changing world
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Circular Economy equity fund

 

What is the circular economy?

The so-called linear economic model consisting of a “take-make-dispose” approach is not viable over the long term. Resources – raw materials and non-renewable energy – are diminishing, the impact of waste, especially plastics, is unsustainable and the global population is growing constantly. This is why all economic participants should move towards a new production and consumption model known as the circular economy, that aims to minimise the consumption of non-renewable resources and the amount of waste

 

BNP Paribas Asset Management launches first circular economy ETF

The BNP Paribas Easy ECPI Circular Economy Leaders UCITS ETF replicates the ECPI Circular Economy Leaders Equity index. It allows investors to be exposed to the performance of 50 international large-cap stocks selected for their active participation in the circularity of goods, materials and commodities in several categories: circular design, recovery of materials, product life extension, sharing platforms and offering products as services (cloud, leasing, exchange of goods).

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What are the challenges for the circular economy?

The challenges are global. This is why the subject has become a major source of concern for governments and the European Commission. They include introducing better waste management, reducing greenhouse gases and reviewing the principle of the planned obsolescence of products. At all levels, the aim is to learn how to increase the levels of sharing, leasing, reusing, repairing and recycling. Investing in this theme and therefore in companies that pledge to respond appropriately to the circular economy provides opportunities in terms of long-term investment performance.

Investments in the aforementioned fund are subject to market fluctuation and risks inherent in investing in securities. The value of investments and the revenue they generate can increase or decrease and it is possible that investors will not recover their initial investment. Source: BNP Paribas Asset Management Holding.