Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF (Acc)

Issuer: Franklin Templeton

Asset Class: Equity

TER: 18bps

Trading Currency: GBP

Pays Income: False

Listing Date: 14 Mar 2023

Ticker: EMPR

ISIN: IE000QLV3SY5

This investment provides targeted exposure to a diversified basket of large and mid-cap companies across various emerging market countries. The core of its strategy is to align the portfolio with the objectives of the Paris Agreement on climate change, aiming to support the transition to a low-carbon economy. By tracking an index that adheres to the European Union's Paris-Aligned Benchmark (PAB) standards, the portfolio significantly reduces its greenhouse gas emissions intensity compared to a standard market-cap-weighted emerging markets index. Furthermore, it systematically excludes companies involved in controversial weapons, tobacco, and those deriving significant revenue from fossil fuels, ensuring a robust ESG profile.

Designed for environmentally conscious investors, this product offers a compelling way to access the long-term growth potential of emerging economies while actively managing climate-related risks. The underlying index methodology not only screens out laggards but also increases the weight of companies that are providing solutions to climate challenges or are on a clear decarbonisation pathway. This forward-looking approach allows investors to gain exposure to markets such as China, India, Taiwan, and Brazil through a lens of sustainability and climate action. It is particularly suitable for those who believe that leadership in climate transition will be a key driver of financial performance in the coming decades.

Ultimately, this instrument serves as a core portfolio holding for investors seeking to de-risk from the financial threats posed by climate change and contribute capital towards a more sustainable global economy. It combines the benefits of broad market diversification with a rules-based, transparent, and cost-effective structure. The strategy is founded on the principle that companies well-positioned for a net-zero future are more likely to deliver sustainable, long-term returns, making it a strategic choice for building a resilient investment portfolio.