Franklin STOXX Europe 600 Paris Aligned Climate UCITS ETF

Issuer: Franklin Templeton

Asset Class: Equity

TER: 15bps

Trading Currency: EUR

Pays Income: False

Listing Date: 31 Jul 2020

Ticker: PARI

ISIN: IE00BMDPBY65

This investment product offers exposure to the European equity market through a portfolio of approximately 600 large and mid-cap companies, while incorporating ambitious climate-focused objectives. The strategy is designed to align with the long-term global warming targets of the Paris Agreement. It achieves this by tracking a specific climate-oriented benchmark index, which systematically reduces exposure to companies with high carbon emissions and those involved in controversial activities or fossil fuels. The methodology aims for a significant initial reduction in greenhouse gas intensity compared to the standard broad European market, providing a core holding for investors who want to de-risk their portfolios from climate-related transition risks.

Beyond the initial screening, the underlying index follows a clear and mandatory year-on-year self-decarbonization pathway. This ensures that the portfolio's overall carbon footprint continues to decrease over time, keeping it on a trajectory consistent with a 1.5°C global warming scenario. The fund not only excludes companies based on their business activities and carbon profiles but also overweights companies that are actively contributing to the climate transition, often referred to as "green enablers." This dual approach of exclusion and positive tilting provides a comprehensive strategy for sustainable investing. It is aimed at environmentally conscious investors seeking to build a resilient, long-term portfolio that participates in the growth of leading European businesses committed to a sustainable future. This makes it a suitable core allocation for those wanting to combine broad market exposure with a tangible impact on climate change.