Amundi has expanded its suite of climate-focused strategies with a new ETF providing Paris-aligned exposure to firms with robust ESG profiles from developed and emerging markets worldwide.
The Amundi MSCI ACWI SRI PAB UCITS ETF has been listed on Deutsche Börse Xetra in US dollars (WELB GY) and euros (WELA GY).
Matthieu Guignard, Head of Products, Platforms & Investment Specialists at Amundi ETF, Indexing & Smart Beta, said: “Investors are looking for more tools to take climate action in a transparent, simple, and cost-effective way.
“We are delighted and committed to further expand our climate ETFs range to help investors achieve their Net Zero objectives”.
The fund is linked to the MSCI ACWI SRI Filtered PAB Index which is constructed from the parent MSCI ACWI universe of large and mid-cap stocks from 23 developed market and 24 emerging market countries globally.
The methodology first screens out companies with significant operations linked to tobacco, weapons, alcohol, adult entertainment, gambling, genetically modified organisms, nuclear power, thermal coal, and oil & gas.
The remaining constituents are then assigned ESG scores between AAA and CCC based on the most relevant ESG factors by industry and risk exposure. The rating process aims to identify ESG leaders and laggards within each industry.
The index selects the securities with the highest ESG scores while targeting a 25% sector representation versus the parent universe. Firms with ratings below A (upper average) are not eligible for inclusion.
The chosen constituents are then weighted using an optimization process that is designed to satisfy the requirements of EU Paris-Aligned Benchmarks. Specifically, the index delivers an immediate 50% reduction in weighted average carbon intensity compared to the parent universe as well as a further 10% annual decarbonization going forward, aligning with a trajectory to limit global warming to 1.5°C by 2050.
The fund comes with an expense ratio of 0.20% and is classified as an Article 9 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
Amundi’s existing suite of Paris-aligned equity ETFs includes products covering global developed, European, and eurozone stock markets, as well as a fund targeting euro-denominated corporate bonds.