Impact Shares has launched the Impact Shares MSCI Global Climate Select ETF in partnership with the United Nations Capital Development Fund (UNCDF).
The new ETF, based on the MSCI ACWI Climate Pathway Select Index, was co-created by Impact Shares and a working group of the Global Investors for Sustainable Development (GISD) Alliance. The ETF includes UN values in its methodology: companies in the index must abide by the UN Global Compact, and entities that profit from weapons, guns, alcohol, tobacco, or palm oil are excluded. Recognizing the urgency of moving to a Net Zero economy during the UN Conference of Parties (COP) meeting and beyond, the index also excludes companies that own or profit from any form of fossil fuel.
Stuart Doole, Managing Director, Research at MSCI, comments: “We are pleased to work with Impact Shares as the index provider for this launch. The MSCI ACWI Climate Pathway Select Index was constructed through an approach that targets companies with climate transition opportunities, minimizes climate transition risks, reduces carbon emitters using Scope 1, 2 and 3 emissions criteria, and includes companies with carbon reduction targets following an annualized 7% year-on-year decarbonization trajectory. The index also targets an improved ESG profile as compared to its parent market capitalization weighted index, the MSCI ACWI Index.”
Impact Shares, a nonprofit fund manager, will donate the net management fee on NTZO to UNCDF to build climate resilience and adaptation in the LDCs.