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 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.
Low tracking error target vs. traditional indices provides core market exposure
Reduction in carbon intensity compared to traditional indices
Targeted self-decarbonisation for the index, year-on-year
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).
Reduce direct emissions and shift towards greener forms of energy
Consumer emissions & opportunities
Benefit from a shift in consumer demands towards low carbon alternatives
Reduce indirect GHG emission from the usage of electricity
Improve the sustainability of water flow management
Reduce waste materials, both hazardous and non-hazardous
From physical risks from extreme weather conditions
Improve climate stewardship