BNP Paribas Asset Management has expanded its actively managed ESG suite with a Europe equity ETF.

The BNP Paribas Easy Sustainable Europe UCITS ETF (BJL6) is listed on the Deutsche Boerse with a total expense ratio (TER) of 0.20%.

BJL6 applies BNPP AM’s ‘active beta’ methodology, which applies active management to exclude companies quickly in line with its proprietary ESG methodology and evolving ESG regulations, rather than seeking to generate outperformance.

Versus its reference index, the ETF seeks to exclude at least 30% of securities, reduce the carbon footprint by at least 50% and reduce greenhouse gas intensity.

The ETF is categorised Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), classified Category 1 by the Autorité des marchés financiers (AMF) and applies Paris-Aligned Benchmark (PAB) exclusion criteria.

BJL6 becomes the third launch in the range after ETF Stream revealed the launch of active US and Japan equity ETFs.

Lorraine Sereyjol-Garros (pictured), global head of development for ETFs and index funds at BNPP AM previously said: “Offering ETFs that combine a recognised ESG approach, high sustainable investment and ambitious decarbonisation target, while providing the benefits of index-based investing, including a reasonable tracking error, will answer the increasing demand from institutional clients and distributors to integrate ESG factors in their portfolio.”

The build out of the firm’s active equity offering came after it made inroads into fixed income with the BNP Paribas Easy Sustainable EUR Government Bond UCITS ETF (BJLM) and the BNP Paribas Easy Sustainable EUR Corporate Bond UCITS ETF (BJLN) last February.