BlackRock has expanded its range of Paris-aligned climate ETFs with the launch of two European equity strategies.
The iShares MSCI EMU Paris-Aligned Climate UCITS ETF (EMPA) and the iShares MSCI Europe Paris Aligned UCITS ETF (EUPB) are listed on Euronext Amsterdam with total expense ratios (TERs) of 0.15%.
The two ETFs track the MSCI EMU Climate Paris-Aligned Select index and the MSCI Europe Climate Paris-Aligned Select index, respectively, which are linked to the European Union’s Paris-Aligned Benchmark (PAB).
As a result, this requires a carbon intensity reduction of at least 50% versus the parent benchmark and a minimum 7% decarbonisation reduction year-on-year which are consistent with the objectives of the Paris Agreement.
The ETFs are categorised as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR) with BlackRock adding 70% of its ETF launches and repositionings this year will qualify as Article 8 or 9.
BlackRock said in a statement: “New climate-oriented investments are now available to investors to help with the economic transition, and one widely available means for clients to effect change right now is through ETFs.
“The EU’s climate benchmarks are designed to reduce exposure to transition and physical climate risks and manage climate change opportunities, as well as help investors seeking to align with a decarbonation trajectory that is compatible with the Paris Agreement.”
Are climate change ETFs greenwashing?
The launches bring BlackRock’s total climate equity ETFs to four. In April, the world’s largest asset manager unveiled the iShares S&P 500 Paris Aligned UCITS ETF (UPAB) and the iShares MSCI World Paris Aligned UCITS ETF (WPAB).
Last October, the firm launched Europe’s first Paris-aligned government bond ETF, the iShares € Govt Bond Climate UCITS ETF (SECD).
