Legal & General Investment Management (LGIM) has announced the expansion of its ETF range with the launch of two ETFs designed to provide investors with low-carbon exposure to major equity markets, in line with the Paris Agreement ambition to reduce global greenhouse emissions and limit global temperature increases to below 2°C.
The L&G Asia Pacific ex Japan ESG Exclusions Paris Aligned UCITS ETF and L&G Japan ESG Exclusions Paris Aligned UCITS ETF support the goals of the Paris agreement by methodically implementing both Paris Aligned Benchmark (PAB) baseline and enhanced environmental, social and governance (ESG) exclusions as well as positive commitments across each index. The funds also benefit from the active and independent engagement of LGIM’s Investment Stewardship team with many investee companies to deliver positive change on topics including net-zero emissions.
The underlying indices, Foxberry Sustainability Consensus Pacific ex Japan Total Return Index and Foxberry Sustainability Consensus Japan Total Return Index, benefit from the expertise of a Sustainability Committee that monitors industry developments, ensures PAB alignment and the fulfilment of positive commitments.
Aanand Venkatramanan Head of ETFs, EMEA at Legal & General Investment Management (LGIM), says: “We believe environmental, social and governance risks are financially material and see responsible investing as the incorporation of ESG considerations into investment decisions. The launch of these two new Paris Aligned ETFs is a demonstration of our continued commitment to providing investors with access to a range of strategies that account for ESG risk, an aspect that has become increasingly important for clients. We are pleased to bring this unique investment proposition to the market, which combines our ETF expertise and our leadership on Climate and Responsible Investing.”
Timo Sallinen, Head of Listed Securities at Varma Mutual Pension Insurance Company, says: “As a founding member of Foxberry’s Sustainability Committee, Varma welcome the geographical expansion of this dynamic framework into Asia.”
In line with current PAB and SFDR standards, both ETFs disclose their sustainable investment objective in line with Article 9 requirements. The ETFs are listed on the LSE, Deutsche Borse and SIX exchanges.