Leading European asset manager Amundi announced that it has strengthened the climate characteristics of a €12 billion suite of ESG ETFs, shifting the products to track Paris-aligned Benchmarks.
Indices that are labelled as Paris-aligned Benchmarks (PABs) under EU rules must meet criteria for asset selection that results in the index aligning with the long-term climate goals of the Paris Agreement. Criteria include a minimum reduction in greenhouse gas (GHG) emissions intensity of at least 50% compared to the market index, with annual GHG emissions intensity reductions of at least 7%, among others.
Amundi stated that its suite of 9 ETFs tracking the MSCI SRI ex Fossil Fuel indices will now be moved to track the MSCI SRI Filtered PAB indices.
Amundi also announced that four other ETFs, including those tracking the MSCI EM ESG Universal SELECT Index, the MSCI Japan ESG Universal Select Index, the MSCI Europe Index and the MSCI USA ESG Broad Select Index will now integrate climate criteria, by shifting them to track their Climate Transition Benchmark (CTB) counterparts, the MSCI ESG Broad CTB Select indices. CTB criteria also include 7% annual decarbonization, and a 30% minimum reduction in GHG emissions intensity relative to the market index.
Arnaud Llinas, Head of ETF, Indexing & Smart Beta at Amundi, said:
“ETFs are reliable tools enabling all types of investors to access sustainable investing in a transparent, simple and cost-effective way. With this latest evolution within the range, Amundi ETF reaffirms its strategic commitment to facilitating investors’ ESG & Climate transition.”