BNP Paribas Asset Management (BNPP AM) has launched the BNP Paribas Global Net Zero Transition Equity fund, a Luxembourg-domiciled equity fund that focuses on decarbonisation and sustainable investment.
The fund’s investment objective is to reduce GHG emissions and implied temperature rise (ITR) below 2 degrees. Its portfolio is selected from more than 1,000 global companies focusing on achieving net zero with a just transition lens. Further, it is diversified by geography, size and sector, with technology, industrials and materials having high representation.
The global equity team selects stocks by assessing companies’ net-zero alignment using the BNPP AM Sustainability Centre’s proprietary framework, which is inspired by the Paris Aligned Investment Initiative’s Net Zero Investment Framework.
It is classified Article 8 under the Sustainability Finance Disclosure Regulation (SFDR) and is committed to having at least 50% in holdings that qualify as ‘sustainable’ under BNPP AM SFDR implementation approach.
Jane Ambachtsheer, global head of sustainability at BNPP AM, said: “We are excited to launch our first fund to invest in companies that meet the criteria of our net-zero ‘AAA’ framework: that is, companies which are achieving, aligned or aligning to net zero. Using this framework as the starting point sets a clear ambition for the companies that will be in the portfolio in a straightforward manner for clients.”
Ambachtsheer continued: “This fund marks our first steps in adding a specific just transition lens to our investment decision making and engagement process. The greening of the economy provides the potential to create jobs and build new industries. A ‘just transition’ should be fair and inclusive and create decent work opportunities. It’s an important part of how investors should assess and engage with companies during this period of transition.”
