Amundi has expanded its suite of ETFs designed to help tackle climate change with two new funds focused on the developed Pacific and European small-cap equity markets.
Amundi has expanded its suite of ESG-enhanced climate ETFs with the addition of two new funds.
The Amundi MSCI Pacific ESG Climate Net Zero Ambition CTB UCITS ETF (X014 GY) and Amundi MSCI Europe Small Cap ESG Climate Net Zero Ambition CTB UCITS ETF (X026 GY) have been listed on Deutsche Börse Xetra in euros.
X014 and X026 come with expense ratios of 0.45% and 0.35%, respectively. Each ETF has been classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
The funds are linked to ‘ESG Broad CTB Select’ indices from MSCI which have been designed to satisfy the requirements of EU Climate Transition Benchmarks (EU CTBs).
The indices begin their construction process from the parent MSCI Pacific Index, which covers large and mid-cap stocks across developed market countries in the Pacific region, and the MSCI Europe Small Cap Index, which focuses on smaller-capitalization companies across developed markets in Europe.
The methodology removes companies embroiled in severe ESG-related controversies as well as firms with business operations in controversial weapons, tobacco, thermal coal, oil sands, nuclear weapons, and arctic oil & gas.
The indices then select and weight their constituents using an optimization process that seeks to satisfy various ESG-related objectives while maintaining a tracking error relative to the parent indices of less than 0.75%.
The objectives include maximizing the overall ESG score, reducing total carbon emissions by at least 30%, reducing potential emissions by at least 30%, and setting a decarbonization trajectory going forward of at least 7% per annum, aligning with a scenario to limit global warming to less than 1.5ºC above pre-industrial levels.
Amundi’s suite of climate-focused ETFs includes a further seven funds that adhere to EU CTB requirements and target stocks from global developed, North American, US, European, eurozone, Japanese, and emerging market universes.