Sustainable, Responsible &/or ESG Policy:

Management objective

The Fund (i) seeks to increase the value of its assets over the medium term through exposure to a dynamic portfolio of equities listed or operating on European markets, the components of which are chosen using a systematic selection method based on environmental, social and governance (ESG) criteria as well as carbon emission and energy transition criteria (ii) while offsetting its carbon footprint (scopes 1 and 2). The offsetting of the Fund's carbon footprint may be considered partial insofar as (i) the Management Company does not take scope 3 into account when calculating carbon emissions and (ii) it only offsets carbon emissions related to the composition of the Strategy Index defined below and not those related to the financial instruments held in the Fund's assets when a synthetic replication method is used.

Key characteristics of the Fund:

In order to achieve its management objective, the Fund will implement a quantitative investment strategy (the Strategy ) consisting of taking long positions on a diversified portfolio of European market equities via the BNP Paribas Europe Select Climate Care NTR Index (the Strategy Index ).

The investment universe consists of European corporate equities selected on the basis of their ESG scores, liquidity constraints, energy transition ratings and financial strength. The application of ESG criteria, including but not limited to, energy efficiency, respect for human and workers' rights, and the independence of the Board of Directors, follows a best-in-class and selective approach that aims to select the leading companies in their sector by excluding at least 25% of the securities from the initial investment universe.

The Strategy Index is based on a systematic model designed by BNP Paribas that is revised quarterly according to an allocation algorithm. This algorithm includes a maximum tracking error of 5% with the STOXX Europe 600 NTR index, and assigns an optimal weighting to each equity in the investment universe so that the energy transition criteria of the resulting equity portfolio are maximised. The revision of the Strategy Index does not involve any cost for this. The full composition of the Strategy Index is available on the website: https://indx.bnpparibas.com. The calculation method of the index may be obtained directly from: https://indx.bnpparibas.com/nr/BNPIESCC.pdf

The Strategy may be implemented by concluding transactions in over-the-counter derivatives or directly, by investing directly in the portfolio of equities composing the Strategy Index.

The application of a non-financial strategy may include methodological limitations, such as the risk of taking ESG criteria into account or the risk of systematic allocation incorporating non-financial criteria.

The Fund will always fulfil PEA (Plan d'Épargne en Actions French equity savings plan) eligibility requirements.

The Management Company will ask an intermediary to offset the Fund's carbon footprint. This offsetting will be carried out through the use of Verified Emission Reduction (VER) backed by the Kasigau REDD+ project of Wildlife Works. The use of VER offers a way to offset carbon emissions with climate, societal and environmental impacts. The selected project protects more than 250,000 hectares of Kenya's highly endangered forests, securing the entire migratory corridor between the Tsavo East and Tsavo West National Parks, and bringing the benefits of carbon finance to more than 100,000 people. Details of the project are available on the Wildlife Works website (http://www.wildlifeworks.com/kenya).

(Source: KID, as at January 2025)

 

SDR Labelling:

Not eligible to use label