The ETFs will follow MSCI indices that aim to reduce exposure to transition and physical climate risks, while investing in opportunities that come from the transition to a lower carbon economy and are aligned with the Paris Agreement.
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.
In addition, Invesco will reduce the weighting of companies exposed to climate transition risks, maximise the weighting of companies with the highest exposure to climate transition opportunities and minimise tracking error relative to the standard MSCI index.
The suite is made up of four ETFs – 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 and Invesco MSCI Japan ESG Climate Paris Aligned UCITS ETF.
The ongoing charges ranges from 0.09% to 0.19%.
Gary Buxton, head of EMEA ETFs and indexed strategies at Invesco, said: “As world leaders initiate plans to slow global warming, companies are key to success. They will need to reduce their carbon footprints while many will also create products and services to help us all improve ours.
“This new range of ETFs offer investors an efficient way to focus on companies with lower climate-related risks and positive exposure to the transition, while meeting broader ESG objectives.”
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