Amundi Index MSCI Japan SRI PAB UCITS ETF DR (C)

Issuer: Amundi ETF

Asset Class: Equity

TER: 18bps

Trading Currency: USD

Pays Income: False

Listing Date: 18 Nov 2022

Ticker: JPX4

ISIN: LU2233156749

This fund offers a strategic approach for investors looking to align their portfolios with strong sustainability principles while capturing the growth potential of the Japanese equity market. The investment strategy is twofold, combining a stringent Socially Responsible Investing (SRI) screen with the robust framework of a Paris-Aligned Benchmark (PAB). The initial SRI filter excludes companies involved in controversial sectors such as tobacco, weapons, and fossil fuels, as well as those failing to meet specific environmental, social, and governance standards. This ensures the portfolio is composed of companies considered to be leaders in sustainability within their respective industries.

The core of the strategy is its adherence to the PAB criteria, which actively steers the portfolio towards decarbonization in line with the Paris Agreement's goal of limiting global warming to 1.5°C. This is achieved by significantly reducing the weighted average greenhouse gas intensity of the portfolio by at least 50% compared to the standard market index and ensuring a further year-on-year decarbonization trajectory of at least 7%. The methodology overweights companies that are on a clear path to reducing their carbon footprint and providing solutions for a low-carbon economy, while underweighting or excluding laggards.

By investing in this product, individuals can gain exposure to a diversified basket of large and mid-capitalization Japanese companies that are not only ESG leaders but are also actively contributing to the climate transition. This makes it a compelling choice for investors seeking a core Japanese equity holding that generates long-term value through a forward-looking, climate-conscious, and socially responsible investment thesis.