The fund constitutes an innovative, liquid, ESG strategy aiming to offset carbon footprint and to offer returns in line with the STOXX Global 1800 index.
The THEAM Quant World Climate Carbon Offset Plan fund aims to provide capital growth over the medium term and to offset its carbon footprint. The fund is exposed to the performance of worldwide-listed equities with high Environmental, Social and Governance (ESG) standards and a positive financial outlook, selected on the basis of their carbon footprint and energy transition strategy.
The fund’s carbon footprint is offset every quarter through the purchase of verified emission reduction certificates (VERs) from the Kasigau Corridor REDD+ project in Kenya, chosen by BNP Paribas for its environmental and social impact.
To achieve its objective, the fund implements a quantitative investment strategy through the BNP Paribas Equity World Climate Care Index, with an expected tracking error of 5% with the STOXX Global 1800 NTR index.
- The fund provides exposure to global companies with high ESG standards (by applying ESG filters and exclusions);
- The selection of companies is made to ensure positive financial outlook, liquidity and risk reduction;
- Companies are further screened on the basis of their carbon footprint and their energy-transition strategy, following a scoring method provided by Moody’s ESG Solutions;
- The residual carbon footprint of the Fund is then offset every quarter by purchasing VER certificated from the Kasigau Corridor REDD+ Project in Kenya.