Move beyond climate-aware

Climate-aware strategies can help investors to 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. 

That’s why we’ve designed the J.P. Morgan Carbon Transition Global Equity UCITS ETF (JPCT N) and the J.P. Morgan Carbon Transition U.S. Equity ETF (JCTR*). We seek a low tracking error exposure to global and U.S. equity markets while reducing carbon intensity and leaning in to the opportunities presented by carbon transition.

Comprehensive carbon evaluation

JPCT N and JCTR* uses a proprietary research framework that aims to determine how well companies are prepared for carbon transition by evaluating their emissions management (forward-looking as well as historical), resource management (such as electricity, waste and water) and climate-related risk management (both physical and reputational risks). 

The aim is to provide a comprehensive view of carbon transition across global sectors and regions that takes into account upside as well as downside risks.

The J.P. Morgan approach to carbon transition

Our research framework is used to construct the J.P. Morgan Asset Management Carbon Transition Global Equity Index and the J.P. Morgan Asset Management Carbon Transition U.S. Equity Index, that leans in to companies that are best prepared, and away from companies that are most exposed, to carbon transition. 

The results are two ETFs that aims to insulate investors from the risks of climate change and seize the investment opportunities made possible by the transition to a low carbon world.