Goldman Sachs Asset Management launched the Paris-Aligned Climate World Equity UCITS ETF (the Fund), listing it on London Stock Exchange Monday and Xetra on October 18.
The Fund will seek to provide investment results corresponding to the Solactive ISS ESG Developed Markets Paris-aligned Benchmark USD Index. The Index requires companies to show a 7% yearly reduction in carbon emission intensity.
The environmentally cautious Fund will guide investors to divert exposure away from companies and industries with incompatible low-carbon and sustainable future strategies.
Peter Thompson, head of Goldman Sachs Asset Management’s European exchange-traded fund (ETF) business, said: “Investors are increasingly focused on obtaining lower carbon intensity exposure to equity markets through simple, low fee and transparent products”.
The development comes during noteworthy concerns over carbon emissions in G7 countries ahead of COP 27, which is set to take place in November.
The Fund will contribute towards “responsible investing objectives”, bringing additional ESG-compliant and sustainable ETFs to the European market.
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