Announcing the inaugural active Global Net Zero Transition equity fund, Jane Ambachtsheer, global head of sustainability at BNP Paribas Asset Management, expressed enthusiasm for focusing exclusively on a portfolio of companies that satisfy their net zero ‘AAA’ framework criteria, specifically, “companies which are achieving, aligned or aligning to net zero.” Photo: BNP Paribas Asset Management

Announcing the inaugural active Global Net Zero Transition equity fund, Jane Ambachtsheer, global head of sustainability at BNP Paribas Asset Management, expressed enthusiasm for focusing exclusively on a portfolio of companies that satisfy their net zero ‘AAA’ framework criteria, specifically, “companies which are achieving, aligned or aligning to net zero.” Photo: BNP Paribas Asset Management

BNP Paribas Asset Management has announced the launch of its first Luxembourg-registered active Global Net Zero Transition Equity fund, aimed at companies aligned with net zero ambitions and promoting sustainable investment across different sectors.

BNP Paribas Asset Management announced the BNP Paribas Global Net Zero Transition Equity fund in a press release on Thursday 21 March, marking its entry into actively managed equity funds focused on net-zero alignment. Registered under Luxembourg law, this fund became available for sale in Luxembourg, France and Italy from 21 March 2024.

The fund is characterised by its broad investment approach, BNPP AM, covering a wide range of sectors, regions and market capitalisations without significant bias towards any style, region or sector compared to its benchmark. It adopts a fundamental strategy aimed at achieving consistent excess returns, with the ultimate investment goal of contributing to the reduction of greenhouse gas emissions and keeping the implied temperature rise below 2 degrees over time.

Nadia Grant, head of global equities at BNPP AM and the fund’s portfolio manager, explained in the firm’s announcement that the fund sought to facilitate net-zero by investing in companies both providing and adopting decarbonisation solutions. The fund reflects BNPP AM’s commitment to its net zero objectives, noted Grant, emphasising BNPP AM’s social and environmental expertise, with a particular emphasis on engagement with companies.

With over 1,000 global companies to choose from BNPP AM’s investment portfolio, the fund focuses on sectors such as technology, industrials and materials, aiming to minimise industry risk in comparison to its benchmark. The selected companies are either adopters of or solution providers for reducing global greenhouse gas emissions. The fund aligns with article 8 of the sustainable finance disclosure regulation, committing to invest at least 50% of its holdings in ‘sustainable’ assets, BNPP AM stated in the press release.

Jane Ambachtsheer, global head of sustainability at BNPP AM, commented on the fund’s launch, emphasising the commitment to invest exclusively in companies that meet the net-zero ‘AAA’-ratings criteria, which include companies achieving, aligned or aligning to net zero.

Furthermore, the fund introduced a charity share class to support Électriciens Sans Frontières, an NGO committed to combating energy and water access inequalities since 1986. This fund also represents a part of BNPP AM’s aim for 60% of in-scope investments to be in line with net-zero by 2030 and 100% by 2040, said BNPP AM.

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