DWS has broadened its sustainable investment offerings with the introduction of three new Xtrackers Exchange-Traded Funds (ETFs).
The funds are tailored for investors seeking exposure to companies in the US, Europe and globally, which have a minimal negative impact on biodiversity.
The Xtrackers Biodiversity Focus SRI Ucits ETFs are now available on the London Stock Exchange and were initially listed on the Frankfurt Stock Exchange on November 3rd.
The new ETFs reflect an investment approach that supports the United Nations’ Sustainable Development Goals (SDGs) and addresses the significant ecological and economic implications of biodiversity loss.
The global value of ecosystem services, which encompasses the benefits derived from nature, is estimated at USD 125 to 140 trillion annually.
With biodiversity loss projected to have a major adverse effect on the world within the next decade, these ETFs provide a vehicle for investors to consider this aspect in their portfolio strategy.
The ETFs align with the ISS STOXX Biodiversity Focus SRI indices and utilize a rigorous multi-stage filter process. This process excludes companies with operations harmful to biodiversity, such as those involved with palm oil, genetically modified crops, or dangerous pesticides.
A further assessment identifies and excludes companies with the most substantial negative biodiversity impact within their sector. Additionally, the ETFs aim to halve the CO2 intensity of the portfolio relative to a broad market index.
Olivier Souliac, head of indexing Xtrackers products at DWS, said, “With the Xtrackers Biodiversity ETFs, investors can transparently reduce the risks associated with the decline in biodiversity for their broadly diversified equity investments. This is an important addition to our range of sustainability-oriented investments.”
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