JPM Carbon Transition Equity ETFs

Move beyond climate aware

Climate-aware strategies can help investors reduce greenhouse gas emissions and mitigate the downside risks from climate change. However, it’s important not to ignore the opportunities that are also being created by the move towards a low carbon world. By tracking proprietary equity benchmarks, our Carbon Transition Equity (CTB) ETFs aim to reduce carbon intensity and increase the decarbonisation of investment portfolios, all while leaning in to the opportunities presented by the carbon transition.

Carbon Transition Equity ETFs from J.P. Morgan Asset Management

Katie Magee explains how the JPM Carbon Transition Global Equity (CTB) UCITS ETF can help decarbonise portfolios by monitoring and tackling climate change risks alongside other key considerations like profitability and tracking error. (9 min webcast)

Proprietary carbon emissions evaluation

Stock selection is driven by how well companies are prepared for carbon transition based on three pillars: Emissions Management (forward-looking as well as historical); Resource Management (such as electricity, waste and water); and Risk Management (both physical and reputational climate risks).

Emissions

Site Emissions
Reduce direct emissions and shift towards greener forms of energy

Consumer emissions & opportunities
Benefit from a shift in consumer demands towards low carbon alternatives

Resource Management

Electricity management
Reduce indirect GHG emission from the usage of electricity

Water management
Improve the sustainability of water flow management

Waste management
Reduce waste materials, both hazardous and non-hazardous

Risk Management

Physical risk
From physical risks from extreme weather conditions

Reputational risks
Improve climate stewardship

Climate Transition Benchmark-aligned portfolios

Using data derived from companies themselves, third-party providers and our own data science team we use a rigorous research framework to construct proprietary benchmarks that lean into the companies best prepared, and away from the companies most exposed, to carbon transition. Our carbon transition benchmark indices are aligned with the European Union’s Climate Transition Benchmark (CTB) standards for sustainable products, aiming to lower carbon intensity by at least 30% vs. reference indexes while also targeting at least 7% reduction in carbon intensity year on year compared to the index.

Further information

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