Following the launch of its first Paris-aligned UCITS ETFs in April 2021, and in line with its commitment to provide clients with a broad set of sustainable investment tools, BlackRock has launched two additional Paris-aligned ETFs, the iShares MSCI EMU Paris-Aligned Climate UCITS ETF (EMPA) and the iShares MSCI Europe Paris Aligned UCITS ETF (EUPB).
BlackRock writes that the Paris-aligned indices have been designed to align with a 1.5°C scenario and meet the minimum standards of the EU Paris-Aligned Benchmark label, while staying as close as possible to the parent benchmark, offering broad and diverse exposures. This requires an immediate carbon intensity reduction of at least 50 per cent versus the parent universe at inception, followed by a minimum 7 per cent decarbonisation year-on-year reduction.
The ETFs, which listed on the Euronext Amsterdam exchange on 29 July, both have a TER of 0.15 per cent and are categorised as Article 9 under SFDR, consistent with BlackRock’s expectation that 70 per cent of its fund launches and repositionings in Europe this year will qualify as Article 8 or 9.
The firm’s Paris-aligned ETF range now consists of four funds, including the iShares MSCI World Paris-Aligned Climate UCITS ETF (WPAB) and iShares S&P 500 Paris-Aligned Climate UCITS ETF (UPAB) which launched in April this year. The range provides investors with transparent and cost-effective asset allocation tools by which they can align their portfolio with the transition to a net-zero economy, consistent with the objectives of the Paris Agreement.