Friday Funds: BNPP AM launches first biodiversity PAB ETF

The latest developments in ESG-related funds: Hargreaves Lansdown announces ESG fund exclusions; Mirova launches two Article 9 bond funds.

BNP Paribas Asset Management has launched a eurozone biodiversity fund, the first PAB-aligned biodiversity ETF. The Article 9 fund tracks a diversified portfolio of eurozone companies and offers investors exposure to firms with a lower impact on biodiversity than their peers. The ETF was listed on 29 September on Euronext Paris and Deutsche Börse Xetra.

Hargreaves Lansdown, one of the UK’s biggest retail platforms, with £123 billion ($135.9 billion; €139.2 billion) in AUM, has announced plans to double down on its commitment to sustainability through ESG exclusions to funds it manages. These include: companies generating 20 percent or more of their revenues from thermal coal power; firms that make 20 percent or more of their revenues from oil sands extraction; funds that profit from revenues from the production, maintenance, sale or research and development of controversial weapons; and UNGC violators.

Funds must have a net-zero commitment and be UN PRI signatories to be considered for a HLAM investment solution. Managers must meet the same criteria in order for their funds to be considered for HL’s “wealth shortlist” of analyst-selected funds.

Mirova has launched two Article 9 bond funds as part of its fixed income range. The Euro High Yield Sustainable Bond Fund and Euro Short Term Sustainable Bond Fund will adhere to a maximum 2C scenario to participate in the decarbonisation of the economy, like all other Mirova funds.

S&P Dow Jones Indices has launched the iBoxx EUR Corporates Net Zero 2050 Paris-Aligned ESG index. It will expand on the existing S&P DJI’s Paris-Aligned and Climate Transition indexes. The index will measure the performance of eligible investment grade corporate bonds selected from its parent iBoxx EUR Corporates index, while considering ESG factors to address transition risk and climate change opportunities that are aligned with the recommendations of the TCFD.

Edentree has launched a green infrastructure fund. Holdings in the fund will include companies engaging with environmental challenges through investment in areas such as alternative energy, energy storage and the circular economy, as well as firms that focus on providing solutions to wider societal challenges.

Quinbrook Infrastructure Partners has sold portfolio company Scout Clean Energy to Brookfield Renewables for A$1.55 billion ($1 billion; €1 billion). Quinbrook acquired Scout as a start-up in 2017 for an initial investment of $6 million. The firm has grown it into a fully integrated developer that owns and operates a diverse and multi-technology asset portfolio spanning 1,200MW of operational wind projects across four states.

Ninety One has launched an emerging markets sustainable equity strategy aiming to capture structural growth opportunities in underserved areas, such as climate change solutions, financial inclusion and access to digital infrastructure.

Glennmont Partners has raised €250 million for its second energy transition credit strategy, which will focus on investment in renewable energy and sustainable infrastructure assets. ETEC II will aim to capitalise on opportunities to support the green energy and infrastructure transition. It is also looking to boost the deployment of renewable technologies, including onshore and offshore wind and solar energy.