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    BlackRock Extends Paris-Aligned Range

    Stockholm (NordSIP) – At the end of July, BlackRock added two new funds to its Paris-Aligned ETF range to cater to clients interested in investing in accordance with the 2015 Paris Agreement that would prefer to meet the standards of the EU’s Paris-aligned Benchmark. The iShares MSCI Europe Paris-Aligned Climate UCITS ETF and the iShares MSCI EMU Paris-Aligned Climate UCITS ETF were listed on the Euronext Amsterdam exchange on July 29th.  The new indices have been designed to align with a 1.5°C scenario and are categorised as Article 9 under the EU’s Sustainable Finance Disclosures Regulation.

    The iShares MSCI Europe Paris-Aligned Climate UCITS ETF is based on the MSCI Europe Climate Paris Aligned Benchmark Select Index.  According to iShares, “the Index aims to reflect the performance characteristics of a subset of equity securities within the MSCI Europe Index (Parent Index), which are selected and weighted to reduce exposure to transition and physical climate risks, and to pursue opportunities arising from the transition to a lower carbon economy whilst seeking to align with the objectives of the Paris Agreement as described further in the Fund’s prospectus.”

    The iShares MSCI EMU Paris-Aligned Climate UCITS ETF is based on the MSCI EMU Climate Paris Aligned Benchmark Select Index. According to iShares, “the Index aims to reflect the performance characteristics of a subset of equity securities within the MSCI EMU Index (Parent Index), which are selected and weighted to reduce exposure to transition and physical climate risks, and to pursue opportunities arising from the transition to a lower carbon economy whilst seeking to align with the objectives of the Paris Agreement as described further in the Fund’s prospectus.

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    Both indices exclude companies involved in ESG controversies. The remaining constituents are selected and weighted based on specific thresholds and other criteria to meet certain decarbonisation targets, reducing exposure to transition and physical climate risks. On top of this, the iShares MSCI EMU Paris-Aligned Climate UCITS ETF also claims to take advantage of opportunities arising from the transition to a lower carbon economy.

    The iShares Paris-Aligned UCITS ETF range now totals four, including the iShares MSCI World Paris-Aligned Climate UCITS ETF and the iShares S&P 500 Paris-Aligned Climate UCITS ETF.

    Image by Free-Photos from Pixabay

    Filipe Wallin Albuquerque
    Filipe is an economist with 8 years of experience in macroeconomic and financial analysis for the Economist Intelligence Unit, the UN World Institute for Development Economic Research, the Stockholm School of Economics and the School of Oriental and African Studies. Filipe holds a MSc in European Political Economy from the LSE and a MSc in Economics from the University of London, where he currently is a PhD candidate.

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