Investment opportunity in a green-focused Exchange Traded Fund debuts
Top Green Companies in the BNP Paribas Easy Low Carbon 300 World ETF
The BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF, a globally focused investment vehicle that targets low carbon footprint companies, has revealed its top green company holdings. The ETF, which was listed on Euronext Paris and Xetra on June 29, 2021 (ISIN: LU2194449075), allocates a significant 15% of its weighting to "green" companies involved in renewable energy or carbon reduction technologies.
The top 10 holdings in the ETF, which collectively make up approximately 30% of the ETF's total portfolio, include:
- Oracle Corp. - 4.82%
- SAP SE - 4.04%
- Cisco Systems, Inc. - 3.73%
- Salesforce, Inc. - 3.57%
- Intuit - 2.97%
- Accenture Plc - 2.52%
- Sony Group Corp. - 2.20%
- Boston Scientific Corp. - 2.15%
- Applied Materials, Inc. - 2.03%
- Novartis AG - 1.94%
These companies are part of the 300 global companies selected for their low carbon attributes. The selection process is carried out by an expert committee, which chooses companies from each sector with the best CO2 emission performance.
The ETF's sector allocation shows a strong focus on technology (32.35%) and healthcare (16.69%), mirroring many of these top holdings in the tech and health industries. The fund primarily includes companies from the USA (50.18%), followed by Japan, the UK, and Germany, indicating a broad international reach of green-oriented businesses.
It's important to note that the ETF targets broad exposure to low carbon leaders rather than exclusively pure renewable energy companies. This explains the presence of large tech and healthcare firms known for their sustainability practices and lower carbon footprints compared to the wider market.
The selected "green" companies derive at least half of their revenue from renewable energy or carbon reduction technologies, ensuring a commitment to environmental sustainability. The companies in the index are chosen using a best-in-class approach, with the index's allocation to "green" companies set at 15%. The ETF tracks the Low Carbon 300 World PAB Index calculated by Euronext.
Investors seeking to support companies with a focus on environmental sustainability and lower carbon footprints may find the BNP Paribas Easy Low Carbon 300 World PAB UCITS ETF an attractive option.
[1] Source: BNP Paribas Asset Management [2] Source: Euronext
Read also:
- "Germany appears less environmentally friendly compared to Texas, according to Harald Lesch's climate documentary"
- Food Prices Increasing Due to Impact of Climate Change
- World's primary energy source expected to shift towards renewables by the year 2026, according to the International Energy Agency.
- Procedure initiated for contract granting by the Commission.
