Invesco has launched a suite of ETFs which they say will aim to deliver improvements in ESG characteristics and meet objectives of the UN Paris Agreement on climate change.
The new ETFs offer exposure to US, Europe, Japan and World equity markets and follow MSCI indices that aim to reduce exposure to transition and physical climate risks. They will also pursue opportunities from the transition to a lower carbon economy while aligning with the Paris Agreement requirements.
Each index applies a broad set of exclusions, with the remaining constituents optimised to reduce carbon intensity to a level consistent with a 1.5°C warming pathway, as well as reducing the weighting of companies exposed to climate transition risks, maximising the weighting of companies with the highest exposure to climate transition opportunities and minimising tracking error relative to the standard MSCI index.
The new ETFs are the:
Invesco MSCI World ESG Climate Paris Aligned UCITS ETF
Invesco MSCI USA ESG Climate Paris Aligned UCITS ETF
Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF
Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF