Stockholm (NordSIP) – Lyxor Asset Management announced the listing of the Lyxor S&P Global Developed Paris-Aligned Climate (EU PAB) (DR) UCITS ETF – Acc on Nasdaq Stockholm. The fund is aligned with the IPCC’s most ambitious scenario to limit global warming to 1.5°C “with no or limited overshoot” above pre-industrial levels, as per the 2015 Paris Agreement goals.
This equity ETF follows the S&P Developed Ex-Korea LargeMidCap Paris-Aligned Climate Net Total Return Index. The fund integrates corporate greenhouse gas emissions throughout the value chain. It also takes into account the risk associated with business activities arising from extreme climate events. It assesses climate-related risks and opportunities along the lines of the TFDC’s “Task Force for Climate-related Financial Disclosure”.
The ETF excludes companies operating in coal, and above certain thresholds for oil production, natural gas and carbon dioxide-intensive electricity production. It also avoids companies that go against EU environmental goals and that have activities related to controversial weapons, tobacco, or violate societal norms.
The fund also promotes the green transition by redistributing capital to the companies that have the most ambitious contributions to emission reductions for a scenario with global warming of 1.5°C. The ETF uses S&P’s climate data specialist Trucost’s Transition Pathway Model, which is based on forward-looking data to analyze and forecast issuers’ future greenhouse gas emissions.
According to Lyxor, the IPCC’s 1.5°C scenario requires a rate of change from fossil dependence of 7% annually. To this end, Lyxor argues that the underlying index also achieves an immediate reduction in carbon dioxide intensity corresponding to 50%. This is in line with the widespread goal of halving CO2 emissions by 2030, which is an important milestone on the road to reaching net zero emissions by 2050.
According to Helena Wedin, European head of exchange-traded products at Nasdaq, demand from investors has led the stock exchange to broaden the range of sustainable investment products to more asset classes.