BNP AM

The sustainable investor for a changing world

BNP Paribas Asset Management European ESG ETF Barometer shows strong shift in investor expectations

The latest BNP Paribas Asset Management (‘BNPP AM’) European ESG ETF Barometer[1] reveals that most investors surveyed expect the European ESG[2] ETF[3] market to continue to expand over the coming year.  In particular, it shows particular interest in low-carbon, PAB[4]-aligned strategies and renewed confidence around sustainability labels.

Lorraine Sereyjol-Garros, our Global Head of Development ETF & Index solutions, comments:

“The results of the latest survey show that investor expectations can change very quickly depending on market conditions and regulatory developments.  In this changing environment, sustainable index strategies continue to attract significant inflows[5], particularly those aligned with the objectives of the Paris Agreement.  This underscores our strategy, started in 2008, of offering an extensive range of low-carbon ETFs and index funds, both on equities and fixed income, with assets under management now more than EUR 13 billion[6].”

References

[1] Survey conducted in November 2022 on behalf of BNP Paribas Asset Management by Longitude, a Financial Times company. Respondents included asset managers and asset owners based in France, Germany, Italy, Switzerland and the UK.

[2] Environmental, Social & Governance

[3] Exchange Traded Fund

[4] Paris-Aligned Benchmark

[5] ESG strategies accounted for 65% of all European ETF inflows in 2022 according to Morningstar data, up from 53% in 2021.

[6] Source: BNPP AM, as at 31 December 2022

[7] As at December 2022, source: www.easy.bnpparibas.fr

Disclaimer

Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.