Following the launch of the first circular economy ETF in May 2019, BNP Paribas Asset Management is expanding its range of sustainable thematic investments through the launch in October 2020 of the first ETF based on the blue economy theme.
The blue economy is defined by the World Bank as the sustainable use of ocean resources for economic growth, improved incomes and jobs, and healthy ocean ecosystems.
This new ETF replicates an index from ECPI, an index supplier specializing in ESG for 20 years, whose methodology is primarily based on the environmental, social and governance (ESG) criteria of listed companies globally.
Companies are selected for their participation in the blue economy and listed according to five categories: coastal livelihood (protection, ecotourism); energy and resources (offshore wind, marine biotech, wave and tidal); fisheries and seafood; pollution reduction (recycling/waste management, environmental services); and maritime transport.
The equally-weighted index consists of those 50 companies with a positive ESG rating and with the largest market capitalization within their category; it excludes companies involved in systematic violations of the UN Global Compact principle and arms production, and companies that derive more than 10% of their revenues from tobacco, thermal coal extraction or unconventional oil and gas.
Source: BNP Paribas Asset Management