BNP Paribas Asset Management has announced the launch of the first blue economy ETF.
The BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF aims to invest in companies best placed to seize opportunities provided by the sustainable use of ocean resources.
It tracks the ECPI Global ESG Blue Economy index, an equally-weighted index providing exposure to 50 large caps selected for their sustainable participation in the blue economy. The index conforms to UN Sustainable Development Goal (‘SDG’) 14: ‘Life below water’.
The blue economy is defined by the World Bank as the sustainable use of ocean resources for economic growth, improved incomes and jobs, and healthy ocean ecosystems.
This new ETF replicates an index from ECPI, an index supplier specialising in ESG for 20 years, whose methodology is primarily based on the environmental, social & governance (ESG) criteria of listed companies globally. Companies are selected for their participation in the blue economy and listed according to five categories: coastal livelihood (protection, eco-tourism), energy & resources (offshore wind, marine biotech, wave & tidal), fisheries & seafood, pollution reduction (recycling/waste management, environmental services) and maritime transport. The equally-weighted index consists of those 50 companies with a positive ESG rating and with the largest market capitalisation within their category; it excludes notably, companies involved in systematic violations of the UN Global Compact principle and arms production, and companies that derive more than 10% of their revenues from tobacco, thermal coal extraction or unconventional oil & gas.
BNP Paribas Easy ECPI Global ESG Blue Economy UCITS ETF has been traded continuously since 6 October 2020 on the German stock exchange Xetra, and Euronext during market opening hours.