The world’s largest asset manager has revamped a number of its exchange-traded funds (ETFs) with the goal of making them the largest lineup of such climate-aligned products.
BlackRock’s iShares ESG Enhanced UCITS ETFs have over $ 9 billion in assets under management.
The main change announced by BlackRock today (October 26) concerns the update of the benchmarks of ETFs, MSCI’s ESG Enhanced Focus Indices. The benchmarks have been adjusted to meet the new requirements of the European Union’s Climate Transition Benchmark Rulebook, which dictates how the indices should be structured to align with the goal of sustaining warming. climate to less than 1.5 degrees Celsius on average above pre-industrial levels.
EU rules also require indices to reduce greenhouse gases by at least 30% compared to a traditional market index, and data should include Scope 3 carbon emissions where possible. . Scope 3 refers to the indirect carbon emissions upstream or downstream of a company.
Manuela Sperandeo, EMEA Head of Sustainable Indexing at BlackRock, said the changes “Raise the level of integration of environmental characteristics in sustainable ETFs”.
Elsewhere, the investment manager specializing in sustainable development Ecofin has a Global Energy Transition Fund to support investors seeking to devote themselves to new and renewable forms of energy production.
The US-based fund, traded under the symbol EETIX, invests in companies that derive at least half of their profits, income or assets from investment themes such as electrification, clean transportation, fuel efficiency. buildings and other activities related to decarbonization.
Matt Breidert, portfolio manager, said: “Companies at the forefront of innovation and developing strategies to achieve sustainable development goals are growing and we expect their actions to be rewarding for investors …
“The impact of solving long-lasting problems, such as climate change, has become a compelling investment case and, just as important, failure to consider these issues represents an investment risk. “
Meanwhile, IndexIQ launched a trio of ESG-themed ETFs on the New York Stock Exchange. The products target companies associated with gender equality, clean transportation and ocean biodiversity.
The IQ Engender Equality ETF (EQUL) was developed in partnership with gender equality data provider Equileap. Portfolio companies must have demonstrated their commitment to gender equality. In addition, the fund will finance contributions that will go to the non-profit organization Girls Who Code.
The ETF IQ Cleaner Transport (CLNR) was created with assistance from the United States National Wildlife Federation. The fund invests in companies developing cleaner modes of transport such as electric vehicles, as well as multi-passenger transport.
The ETF IQ Clean Oceans (OCEN) invests in companies that support or protect ocean environments by reducing pollution and increasing resource efficiency. The fund was developed in partnership with the international defense group Oceana.