Amundi Index MSCI Europe SRI PAB UCITS ETF DR (D)

Issuer: Amundi ETF

Asset Class: Equity

TER: 18bps

Trading Currency: GBX

Pays Income: False

Listing Date: 26 Nov 2019

Ticker: ESDG

ISIN: LU2059756598

This investment vehicle offers exposure to a portfolio of European large and mid-capitalisation companies that exhibit strong Environmental, Social, and Governance (ESG) characteristics. It is specifically designed for investors looking to align their portfolios with climate objectives, particularly the long-term goals of the Paris Agreement. The fund aims to replicate the performance of a benchmark index that follows a stringent selection process. This process begins with the parent MSCI Europe Index and then applies a series of filters. It excludes companies involved in controversial activities such as controversial weapons, tobacco, and thermal coal, as well as those that do not meet certain ESG standards. The methodology emphasizes companies with high ESG ratings and significantly reduces the portfolio's carbon footprint compared to the broader market.

The strategy adheres to the criteria of a Paris-Aligned Benchmark (PAB), which means it targets a 50% reduction in greenhouse gas intensity versus the parent index and aims for an annual decarbonization trajectory of at least 7%. By investing in this fund, individuals can gain access to a diversified basket of European equities that are not only leaders in sustainability but are also positioned to navigate and potentially benefit from the global transition to a low-carbon economy. This makes it a suitable core holding for environmentally conscious investors seeking to build a resilient, long-term portfolio focused on developed European markets while actively contributing to climate change mitigation efforts. The fund operates with a physical replication model, meaning it holds the underlying stocks of the index directly.