The BNP Paribas Easy ECPI Global ESG Hydrogen Economy UCITS ETF tracks the ECPI Global ESG Hydrogen Economy Index, which comprises developed market equities with market capitalizations above €500 million and average daily trading volumes over €5 million.
Companies with business operations linked to tobacco, controversial weapons, conventional weapons, oil & gas, thermal coal, and coal-based electricity generation are first removed from the methodology, as are companies with very low ESG ratings and companies with business operations linked to tobacco, controversial weapons, conventional weapons, oil & gas, thermal coal, and coal-based electricity generation.
The index then looks for businesses that fall into one of two categories: ‘Hydrogen Products’ or ‘Clean Energy.’
Firms active primarily in hydrogen projects, such as hydrogen producers, fuel cell makers, or enterprises in the electrolysis industry, fall into the Hydrogen Products category.
Meanwhile, clean energy corporations are made up of renewable energy producers with just a small amount of exposure to hydrogen manufacturing facilities.
The index includes 40 stocks, including the top 30 from the Hydrogen Products category and the top 10 from the Clean Energy category. The constituents are equally weighted, and the index is evaluated every two years, with buffer provisions in place to prevent excessive turnover.
The cost ratio for the ETF is 0.30 percent.
