BlackRock has unveiled a five-strong climate transition ETF range.
The ETFs, which are listed on Euronext Amsterdam and classified as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR), are:
iShares MSCI World Climate Transition Aware UCITS ETF
iShares MSCI Europe Climate Transition Aware UCITS ETF
iShares MSCI EMU Climate Transition Aware UCITS ETF
iShares MSCI US Climate Transition Aware UCITS ETF
iShares MSCI Japan Climate Transition Aware UCITS ETF
The ETFs aim to ‘provide access to companies leading in the transition to a low carbon economy.’
The ETFs track their respective regions of the MSCI Transition Aware Select index suite.
The indices aim to include companies that have either set one or more greenhouse gas emissions reduction targets approved by the Science Based Targets initiative (SBTi), or derive 20% or more of their revenues from green revenues, or have published emission reduction targets.
The indices exclude companies with ‘Very Severe’ MSCI ESG controversies and companies not in compliance with the UN Global Compact Principles.
In addition, they exclude companies involved in controversial weapons, tobacco, thermal coal mining, thermal coal power generation and unconventional oil and gas extraction.
Manuela Sperandeo (pictured), head of iShares product for Europe and Middle East at BlackRock, said: “The transition to a low carbon economy is set to spur a significant reallocation of capital as energy systems and technologies continue to evolve and develop.
“With the launch of the climate transition aware range, we are expanding the choice we offer clients seeking to mitigate the investment risks and capture the opportunities from this transition.”
Elsewhere, BlackRock launched its first active equity ETFs in Europe amid the boom in demand for active management within the ETF wrapper.
Elsewhere, BlackRock’s electric vehicle ETF will see a change to its strategy following a review from index provider STOXX.
