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 maintaining low tracking error exposure to proprietary equity benchmarks, our Carbon Transition Equity (CTB) ETFs aim to reduce the carbon intensity and increase the decarbonisation of investment portfolios, all while leaning into the opportunities presented by the carbon transition.
Low tracking error target provides core market exposure
Reduction in carbon intensity compared to traditional indices
Targeted self-decarbonisation for the index, year-on-year
Carbon Transition Equity ETFs from J.P. Morgan Asset Management
With similar regional, sector and return characteristics to traditional equity benchmarks, these core equity strategies provide a comprehensive view of the carbon transition that takes into account upside as well as downside risks.
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 sustainacility of water flow management
Reduce waste materials, both hazardous and non-hazardous
From physical riscs from extreme weather conditions
Improve climate stewardship
Climate Transition Benchmarked-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.
Carbon transition ETF range