Fresh environmental-focused Exchange-Traded Fund now available for investment.
The BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF is a unique investment vehicle that tracks the Low Carbon 300 World PAB Index, a collection of 300 global companies aligned with climate change mitigation through low carbon and energy-efficient strategies. The ETF, which has been listed on Euronext Paris and Xetra since June 29, 2021, is designed to provide exposure to companies with reduced carbon footprints and sustainable practices.
Composition of the ETF
The ETF consists of 300 companies from a global universe of assets. The top 10 holdings constitute about 29.1% of the portfolio, with significant representation from the technology and healthcare sectors. Notable companies include SAP SE, Oracle Corp., Salesforce, Inc., Cisco Systems, Intuit, Accenture Plc, Sony Group Corp., Boston Scientific Corp., AbbVie, Inc., and Novartis AG.
The geographical distribution of the ETF is diverse, with the largest exposure to the USA (48.99%), followed by Japan (10.78%), the UK (7.63%), Germany (5.43%), and other countries making up 27.17%. The sector breakdown is predominantly technology (31.15%), healthcare (16.96%), financial services (12.27%), industry (9.52%), and other sectors (30.10%).
Selection Process
The selection process for the ETF is based on the Low Carbon 300 World PAB Index, which chooses companies primarily based on their low carbon intensity and contribution to reducing carbon emissions. Companies included are those that have a significantly lower carbon footprint compared to their peers and are positively aligned with Paris Agreement Benchmarks (PAB).
The index excludes companies with high carbon emissions and those involved in industries detrimental to the environment. It focuses on firms with substantial involvement or revenue from renewable energy, carbon reduction technologies, and sustainable business models. The process is rules-based, applying environmental, social, and governance (ESG) screens, especially targeting the reduction of carbon emissions, and aims at investing in companies engaged in "green" activities or providing solutions for climate change mitigation.
In conclusion, the Easy Low Carbon 300 World PAB UCITS ETF is a diversified global fund that screens 300 companies for low carbon emissions, favoring firms with substantial revenue exposure to renewable energy or technologies contributing to carbon reduction, predominantly in technology and healthcare sectors, mostly concentrated in the US and other developed markets.
- To enhance its focus on environmental science and climate-change mitigation, the Easy Low Carbon 300 World PAB UCITS ETF excludes companies involved in industries detrimental to the environment.
- The selection process for the ETF involves investing in companies engaged in "green" activities or providing solutions for climate change mitigation, making it an ideal choice for individuals who seek financial opportunities in science and climate-change related fields.
- By choosing companies with lower carbon intensity and higher contribution to reducing carbon emissions, the BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF can help individuals diversify their investments in the finance and investing sectors while promoting sustainable environmental practices.
