BNP Paribas AM launches low carbon ETF

BNP Paribas Asset Management has launched the BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF.

The ETF is a thematic listed index fund which listed on Euronext Paris and Deutsche Börse Xetra on 29 June and replicates the Low Carbon 300 World PAB index.

The index consists of 300 best-in-class international companies and industry leaders in reducing CO₂ emissions. There is a 15% allocation to ‘green’ companies which generate at least half of their revenue from renewable energy or the development of low carbon technologies.

The index is in line with the Paris Aligned Benchmark (‘PAB’), as well as the goals of the Paris Agreement, which aim to limit global warming to 1.5° C by 2050. These standards apply exclusion requirements for fossil fuels and include reducing the carbon intensity of the index by at least 50% as well as a portfolio decarbonisation target of at least 7% per year. The PAB index also provides for a carbon footprint measurement based on Scope 1, 2 and 3 emissions.