Posted inESG

Lyxor unveils suite of climate change ETFs

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Lyxor ETF has launched a suite of ETFs for the European market, which aim to tackle climate change.

The range includes European, US, Emerging Markets and World equity exposures and are designed to be consistent with the carbon emission reduction targets of the Paris Agreement of 2015.

The Emerging Markets and US ETFs were listed today on Euronext (in euro) on 26 March and they’ll also be listed on London Stock Exchange (in US dollar) on 7 April. Two further ETFs will follow shortly, the group said.

Tracking MSCI’s Climate Change indices, the products take into consideration the main objectives of the European Union’s regulations on investment benchmarks as part of the EU Action Plan on Financing Sustainable Growth of 2018.

Lyxor highlighted most major investment benchmarks currently imply temperature rises of around 4°-6°C between now and 2100, which could mean the end of humankind as we know it, so shifting the trillions away from these non-compliant indices is extremely important.

Role of ETFs  

Arnaud Llinas, head of Lyxor ETF & Indexing, said: “By revising its investment benchmark regulations, the EU has assigned passive, rules-based investment managers a key role in the fight against climate change. ETF providers have the opportunity, and indeed the responsibility, to help shift the trillions by offering simple, transparent products which meet the requirements of the new regulation.

“Through the addition of this range, we are providing investors with yet more tools to achieve their climate goals.”

The Lyxor MSCI USA Climate Change UCITS ETF and Lyxor MSCI EM Climate Change UCITS ETF carry a TER of 0.25% and 0.3% respectively.

Part of the Bonhill Group.