Amundi EUR Corporate Bond PAB Net Zero Ambition UCITS ETF Acc

Issuer: Amundi ETF

Asset Class: Fixed Income

TER: 14bps

Trading Currency: GBX

Pays Income: False

Listing Date: 26 Oct 2018

Ticker: CRPX

ISIN: LU1829219127

This investment vehicle offers exposure to a diversified portfolio of investment-grade, fixed-rate corporate bonds denominated in Euros. It is specifically designed for investors looking to align their fixed-income allocation with climate objectives. The strategy focuses on significantly reducing the portfolio's carbon footprint compared to the broader market, adhering to the stringent criteria of a Paris-Aligned Benchmark (PAB). This means the underlying portfolio is constructed to be on a decarbonization trajectory consistent with the goals of the Paris Agreement.

The methodology begins with a universe of Euro-denominated, investment-grade corporate bonds. It then applies a rigorous screening process based on both environmental, social, and governance (ESG) factors and specific climate metrics. Issuers involved in controversial activities or those with poor ESG ratings are excluded. The remaining bonds are then weighted to achieve a substantial reduction in greenhouse gas intensity and to align the portfolio with a 1.5°C global warming scenario. This dual-focus approach ensures that investors gain exposure not only to companies with better ESG practices but also those that are actively managing their transition towards a low-carbon economy.

This fund provides a core fixed-income solution for climate-conscious investors. It allows for participation in the European corporate bond market while actively contributing to climate change mitigation. By targeting companies on a clear decarbonization path, the strategy may also offer a degree of protection against transition risks associated with climate change, such as regulatory changes or shifts in consumer demand. It is suitable for those seeking stable income generation from corporate debt, combined with a measurable, positive environmental impact, making it a compelling choice for building a sustainable, long-term investment portfolio.