European fixed income ETF provider Tabula Investment Management Limited has listed its Paris-aligned Article 9 Climate EUR IG Bond UCITS ETF on Borsa Italiana (Ticker: COOL IM).
European fixed income ETF provider Tabula Investment Management Limited has listed its Paris-aligned Article 9 Climate EUR IG Bond UCITS ETF on Borsa Italiana (Ticker: COOL IM).
The firm writes that the new listing offers Italian investors access to the first Article 9 EUR IG ETF in Europe focused on climate, which focuses specifically on GHG emissions reductions aligned to Paris agreement goals. The ETF was launched in January 2021 on Xetra (Ticker: TABC GY) and has already attracted over USD100 million of assets from a range of institutional investors.
COOL allows passive investors to align core EUR IG corporate bond allocations with a 1.5°C Paris scenario, Tabula writes. The ETF is transparent and meets all EU Paris-aligned Benchmark (PAB) standards, which results in a significant reduction in portfolio emissions. Investors can use the ETF to reduce the emissions of their Euro IG bond allocation by over 60 per cent versus the broad non-ESG benchmark (as of 30 November 2021). It undertakes robust ESG screening, with bonds excluded from companies that have violated ‘social norms’ (on human rights and labour, for example), to those selling controversial weapons and tobacco, and from companies that cause significant environmental harm.
Under EU SFDR, COOL has been categorised as an Article 9 fund, meaning it contributes to a ‘sustainability objective’ with a specific target to reduce total greenhouse gas (GHG) emissions. In a market where transparency for end investors is critical, Tabula produces monthly emissions reporting and quarterly commentary, providing performance and carbon metrics, including relevant climate-related news, recent exclusions/inclusions, and its stewardship activities.
“Tackling climate change is arguably the defining issue of our age and addresses a major risk to all investment portfolios,” says Tabula CEO, Michael John Lytle. “Investors need to utilise specialist climate solutions, and there needs to be a major shift of large asset pools into a range of climate impact investments.”
