Launched on 25 June 2024, the ‘BCV FUND (LUX) - Ethos Climate ESG Ambition’ investment fund is celebrating its first anniversary. Based on Ethos’ positive impact methodology, this equity fund primarily invests in companies that contribute to the ecological transition and reduce the impact of climate change. This anniversary coincides with the publication of the fund's first annual sustainability report.
One year ago, Ethos and BCV launched an investment fund dedicated to climate issues: the BCV FUND (LUX) - Ethos Climate ESG Ambition. Classified as an ‘Article 9’ fund under the EU Sustainable Finance Disclosure Regulation, this equity fund meets the highest standards of responsible investing. Its objective is to invest in companies that contribute positively to the energy transition and to reducing the impacts of climate change through their services or products.
The positive impact methodology developed by Ethos is used to identify companies that can be included in the fund. It determines the proportion of a company's turnover generated in one of seven themes that play a key role in the transition to a more sustainable economy: sustainable energy, low-carbon mobility, sustainable real estate, resilient agriculture, aquaculture and forestry, circular economy, sustainable water management and pollution control. This analysis filter complements the other traditional criteria used by Ethos (exclusions, ESG ratings) for its investment funds. After the selection process, the fund manager can select only slightly more than 100 companies out of the 2000 or so that make up the developed and emerging market equity universe.
Financial analysis is carried out by BCV, which identifies the best opportunities in the investment universe by combining qualitative, fundamental and behavioural analysis. This combination of analyses enables to invest in companies with an attractive risk/return profile and to build a diversified and balanced portfolio of around 50 stocks. “This approach has proven its worth, said Éric Chassot”, CIO Equities at BCV. “In a very difficult environment, our strategy has performed well, particularly this year.” He adds that this is also reflected in the positive development of assets under management.
It should be noted that Ethos is responsible for exercising the voting rights attached to the securities included in the fund, in accordance with its guidelines and principles of good governance. Ethos engages in ongoing and constructive shareholder dialogue with the companies in which it invests to encourage them to continuously improve their ESG practices.
First sustainability report
This anniversary coincides with the publication of the first annual report (in French for the time being), which presents the fund's sustainability profile and provides investors with transparent information on the fund's objectives and investment process.
For example, the report shows that at the end of 2024, 81.1% of the fund's assets were invested in companies with more than 20% of their revenue coming from activities with a positive impact, compared to only 8% for the MSCI World equity index. The report also shows that 75% of the companies included in the fund had set science-based greenhouse gas emission reduction targets (SBTi or equivalent), compared to just 44% of companies in the MSCI World Index.
Sustainability report 2024 (in French)
An award and strong ambition
In March 2025, Ethos and BCV were awarded the prize for best impact fund manager (‘Best ESG Investment Fund: Impact’) for their management of this climate fund. This award, presented by ESG Investing, a platform specialising in ESG and sustainable finance news, is the culmination of the successful partnership between Ethos and BCV.
"This award demonstrates the high level of climate ambition of our fund,‘ said Vincent Kaufmann, CEO of Ethos. The aim is to enable investors to actively contribute to the ecological transition and the fight against climate change.’
Ethos and BCV became strategic partners in October 2020 with the aim of offering institutional and private investors sustainable and responsible investment solutions and products. This partnership now encompasses six funds managed by BCV Asset Management and advised by Ethos, as well as other financial products developed jointly by the two companies.
