European institutional investor-focused ETF provider Tabula Investment Management announced the launch of the Tabula EUR IG Bond Paris-aligned Climate UCITS ETF, the world’s first Paris-Aligned ETF for fixed income investors.
Tabula CEO, Michael John Lytle said:
“Tackling climate change is arguably the defining issue of our age, and addresses a major risk to all investment portfolios. Investors need to utilise specialist climate solutions, and there needs to be a major shift of large asset pools into a range more climate impact investments.”
The new ETF, developed in partnership with Solactive and ISS ESG, aims to enable investors to gain exposure to Euro investment-grade bonds from companies with 50% lower greenhouse gas emissions, by tracking track the Solactive ISS Paris Aligned Select Euro Corporate IG Index. The index targets a 50% reduction in Scope 1, 2 and 3 GHG emissions versus the Euro IG universe and 7% annual decarbonisation. Additionally, it applies exclusions, screening for social norms, UNGC, controversial weapons, tobacco, fossil fuel revenue and significant environmental harm.
Tabula CIO, Jason Smith, said:
“The investment management industry has a duty to develop more innovative and higher impact ways to help divert investment into companies with strong ESG credentials. We believe our latest ETF is the best passive example of this in the fixed income space. We also need to prevent greenwashing and misleading low-carbon claims, improve transparency and comparability, while incorporate broader ESG screening.”
Timo Pfeiffer, Chief Markets Officer at Solactive, added:
“Tabula’s innovative approach to passive fixed income has resulted in a liquidity-focused core IG ETF that exceeds the emissions reduction goals of the Paris climate agreement. We are happy that we can serve as the index provider for this meaningful and important ETF that helps to make the world a greener place.”