The Luxembourg-domiciled fund focuses on decarbonization and is overweight in sustainable investments.
BNP Paribas Asset Management (BNPP AM) has launched the BNP Paribas Global Net Zero Transition Equity fund, a Luxembourg-domiciled equity fund that features “a strong focus on decarbonization and an overweight in sustainable investment,” officials say.
The fund offers investors “exposure to a well-diversified strategy across sectors, regions, and market cap,” according to BNPP AM.
“Net zero can be achieved through directing investments toward companies providing solutions and those adopting solutions to decarbonize and therefore contribute to net zero alignment,” says Nadia Grant, head of global equities at BNPP AM and portfolio manager of the new net zero fund, in a prepared statement.
“With this new equity fund, we aim to provide an innovative strategy aligned with BNPP AM Net Zero commitments while leveraging our social and environmental expertise and focusing on engagement,” Grant adds.
The BNP Paribas Global Net Zero Transition Equity Fund consists of “more than 1,000 global companies focusing on achieving Net Zero with a Just Transition lens,” according to BNPP AM.
“The fund is managed as an active core fund, using the Global Equity team’s investment philosophy and process that has its roots in behavioral finance. …The investment team uses the BNPP AM Sustainability Centre’s proprietary net-zero alignment framework, which is inspired by the Paris Aligned Investment Initiative’s Net Zero Investment Framework. … The fund is classified Article 8 as per SFDR [Sustainable Finance Disclosure Regulation] and is committed to having at least 50 percent in holdings that qualify as ‘sustainable’ under BNPP AM SFDR implementation approach,” according to BNPP AM.
“This fund also marks one of our first steps in adding a specific Just Transition lens to our investment decision making and engagement process. … A ‘just transition” should be fair and inclusive and create decent work opportunities,” says Jane Ambachtsheer, global head of sustainability at BNPP AM, in a statement. “It’s an important part of how investors should assess and engage with companies during this period of transition.”
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