UBS launches climate aware equity ETF

UBS has launched the Climate Aware Global Developed Equity ETF.

The fund allows investors to reduce their portfolios’ carbon footprint by exceeding climate-transition benchmark requirements, resulting in a 1.8°C degree portfolio. UBS licensed the Solactive UBS Climate Aware Global Developed Equity CTB Index underlying the ETFs.

The index follows UBS AM’s Climate Aware framework which includes companies with a best-in-class climate score while excluding companies that are more passive. To derive its climate score the index takes into account risks and opportunities linked to climate change such as a company’s carbon emissions, its renewable energy generation capacity, or its share of revenues resulting from coal mining or generation of energy from coal. Industry leaders are overweighted while excluding the bottom 30%.

The Index also excludes companies involved in tobacco, controversial and military weapons, firms with United Nations Global Compact violations, and companies exposed to production and energy generation of thermal coal and oil sands.

The UBS Climate Aware Global Developed Equity CTB UCITS ETF started trading on Xetra, Borsa Italiana, and SIX Swiss Exchange on Marc