Investors are increasingly aware of environmental issues related to global warming, and many are striving to reduce their portfolios' carbon footprint.
Launched in October 2008, BNP Paribas Asset Management has created the BNP Paribas Easy Low Carbon 100 Europe® PAB UCITS ETF as part of its long-term commitment to responsible investment.
This ETF replicates the Low Carbon 100 Europe® PAB index, calculated and published on a continuous basis by Euronext. It reflects upward and downward trends in the historical performance of the 100 largest European companies generating the lowest CO2 emissions, selected from each sector of the economy according to a ‘best-in-class’ approach. From these 100 companies, 10 to 15 are selected for their positive contribution to the energy transition, both in terms of their carbon performance and the positive environmental impact of their products and services.
The Euronext Low Carbon 100 Europe® PAB index, already aligned with the objectives of the Paris Climate Agreement, is also in line with the new Paris Aligned Benchmark (PAB) climate index. The PAB imposes more stringent requirements for the exclusion of fossil fuels, aiming to reduce carbon intensity by 50% compared to the initial investment universe, as well as setting a minimum annual carbon intensity reduction of 7%.
New methodology from 21 December 2018:
Exclusion of companies with fossil fuel reserves; any companies searching, collecting, treating, refining or transporting coal, oil or gas and utilities that use fossil fuels to produce electricity; and exclusion of the grey companies.
BNP Paribas Asset Management aligns BNP Paribas Easy Low Carbon 100 Europe UCITS ETF with provisional Paris Aligned Benchmark standard: