BNP Paribas Easy EUR Corporate Bond SRI PAB 7-10Y UCITS ETF

Issuer: BNP Paribas Asset Management

Asset Class: Fixed Income

TER: 15

Trading Currency: GBP

Pays Income: False

Listing Date: 05 Feb 2026

Ticker: C7GB

ISIN: LU2742532828

This investment vehicle is designed for those looking to gain exposure to the European corporate bond market while adhering to stringent sustainability criteria. The fund's primary objective is to replicate the performance of an index composed of investment-grade, fixed-rate corporate bonds denominated in the single European currency. It specifically targets bonds with a maturity range of seven to ten years. By focusing on this intermediate duration, it seeks a balance between offering a potentially attractive yield and managing sensitivity to interest rate fluctuations. The core of its strategy lies in its commitment to responsible investing, integrating both Socially Responsible Investing (SRI) and Paris-Aligned Benchmark (PAB) principles into its portfolio construction.

The underlying benchmark applies a rigorous screening process. Initially, it filters out issuers involved in controversial business activities, such as weapons, tobacco, and thermal coal, aligning with SRI values. Following this, it implements the PAB framework, which mandates a significant and progressive decarbonization pathway. This involves selecting companies that are on track to reduce their carbon footprint in line with the Paris Agreement's goal of limiting global warming. The methodology aims for at least a 50% reduction in greenhouse gas intensity compared to a standard market-cap-weighted corporate bond universe and an ongoing annual decarbonization target of 7%. This dual-filter approach ensures that the portfolio is not only socially responsible but also actively contributes to the transition to a low-carbon economy.

For investors, this product offers a compelling way to access a diversified portfolio of European corporate debt that is both ESG-compliant and climate-focused. It can serve as a core holding within a fixed-income allocation for those who wish to align their capital with sustainability objectives without sacrificing the traditional benefits of bond investing, such as income generation and portfolio diversification. The physical replication method ensures direct ownership of the underlying bonds, providing transparency and eliminating counterparty risk associated with synthetic structures. It is suitable for individuals aiming to build a resilient, forward-looking portfolio that reflects both their financial goals and their environmental and social values.