Nuveen has launched the Global Net Zero Transition ETF which is aligned with the goals of the Paris Climate Agreement.
The fund invests in stocks in the following three categories:
- Climate leaders: Companies that have committed to carbon-reduction plans validated as Paris-aligned, as well as companies with a credible intention to reducing carbon
- Companies providing disruptive technology that significantly supports climate mitigation
- High-carbon emitters where reduction will represent a meaningful contribution to real-world emissions decline
The ETF looks to outperform the MSCI All Country World Index (ACWI) with a focus on carbon emissions reductions. Nuveen says their net zero stewardship approach focuses on the portfolio’s highest carbon emitters to move companies closer to reductions in their emissions
“Our research shows that nine out of 10 investors want to see the results of their ESG investing. Accordingly, in this strategy, we’ll practice transparent stewardship, including publishing data demonstrating the reduction of emissions, pointing specifically to the companies that are driving progress and continuing to signal our own accountability,” said Amy O’Brien, Global Head of Responsible Investing, Nuveen.