Goldman Sachs Asset Management has announced the launch of the Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF, which has listed on the London Stock Exchange and is expected to list on Xetra on or around 18th October.
The firm writes that the fund’s investment objective is to provide investment results that closely correspond, before fees and expenses, to the performance of the Solactive ISS ESG Developed Markets Paris-Aligned Benchmark USD Index.
The index is comprised of global developed market equities and is constructed to meet the minimum requirements for EU Paris-Aligned benchmarks. The Paris Agreement is an international treaty on climate change, which has the objective of keeping global temperatures below 1.5°C compared to pre-industrial levels by limiting greenhouse gas emissions.
The firm writes that the fund could help investors to manage climate transition risks by shifting exposure away from companies or industries that have business models that are inconsistent with a low carbon future. In addition to excluding certain sectors and targeting an overall greenhouse gas emissions intensity 50 per cent lower than the parent index, the Paris-aligned benchmark minimum standards require companies within the Index to show a 7 per cent year-over-year reduction in carbon emissions intensity.
The fund builds on Goldman Sachs Asset Management’s long-standing commitments to responsible investing, the firm says, underscored by its recent acquisition of NN Investment Partners, a leading European asset manager with strong Environmental, Social and Governance (ESG) integration across its business.
Peter Thompson, Head of Goldman Sachs Asset Management’s European Exchange Traded Fund (ETF) business, says: “Investors are increasingly focused on obtaining lower carbon intensity exposure to equity markets through simple, low fee and transparent products. We are excited to introduce the Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF, which can contribute towards our clients’ portfolio construction and responsible investing objectives. We look forward to bringing further ETFs with ESG and sustainable characteristics to the market as we continue to expand our ETF offering to European clients.”