BNP Paribas Easy ESG Enhanced World UCITS ETF EUR Cap

The investment objective of the Fund is to provide exposure to the world developed equity market while taking into account Environmental, Social and Governance (“ESG”) criteria. Investment Policy: The Fund’s investment universe (the “Investment Universe”) consists of the securities of the MSCI World Net Total Return USD Index (NDDUWI Index) (the “Index”). To achieve its investment objective, the Fund implements an active strategy which consists of applying a binding and significant ESG integration approach to select securities from the Investment Universe with a view to improving the Fund’s ESG profile compared to that of the Index which is a broad market index) (the “Strategy”). The Strategy is implemented to select securities from the investment universe for the Fund to consistently achieve the following targets: - a higher ESG score than that of the Index after eliminating at least 30% of securities based on ESG Scores; - comply with the exclusions applied to the Fund; - a carbon footprint at least 50% lower than that of the Index; - a lower greenhouse gas (“GHG”) intensity than that of the Index; - a portfolio of companies with a board gender diversity ratio higher than that of the Index; and - a minimum proportion of 45% of the portfolio invested in sustainable investments as defined in Article 2 (17) of SFDR. In addition, and in the framework of the implementation of the Strategy, the Investment Universe is reduced by removing companies that do not comply with the Investment Manager’s Responsible Business Conduct (“RBC”) Policy which includes: 1) norms-based screens, such as the UN Nations Global Compact principles and OECD Guidelines for Multinational Enterprises, and 2) the Investment Manager’s sector policies, as set out in the section of the Prospectus titled “ESG-related Disclosures Responsible Business Conduct Standards”. The review of the Investment Universe through the ESG integration approach is made against three ESG criteria: - Environmental: such as energy efficiency, reduction of emissions of greenhouse gases, and treatment of waste; - Social: such as respect of human rights and workers’rights, and human resources management (workers’health and safety, diversity); and - Governance: such as board independence, managers’remuneration, and respect of minority shareholders rights. ESG scores, as defined by the Investment Manager’s proprietary scoring framework, are used as part of this assessment. Further details of the Investment Manager’s ESG scoring framework can be found in the Prospectus under the heading “Index Funds and Active Funds: ESG Scoring Framework”. As such, the extra-financial analysis coverage is at least 90% of the assets of the Fund (excluding ancillary liquid assets) and is based on the Investment Manager proprietary extra-financial framework as further described in the section of the Prospectus titled “ESG-related disclosures”. While the Investment Universe consists of the Index constituents, further to the application of the ESG integration approach and stock selection, the weightings of the Fund’s portfolio will deviate from those of the Index and the Fund may not invest in some of the Index constituents. In addition though, and as part of the application of the Strategy, the Fund uses tracking-error and sector controls to limit performance deviation from the Index. As a result, the Fund’s returns may be close to those of the Index. The extra-financial strategy carried out at each step of the investment process, may comprise methodological limitations such as the Extra-financial Criteria and Sustainable Investments Risk. The Fund’s base currency is US Dollar. Distribution Policy: It is not the current intention of the Directors to declare dividends in respect of Classes identified as “Capitalisation”. Recommendation: This Fund is suitable for medium to long term investment, though the Sub-Fund may also be suitable for shorter term exposure to the Index. Please refer to the supplement of the Fund (the “Supplement”) for additional details about the objective and investment policy.