Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF Acc
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 19bps |
| Trading Currency: USD |
| Pays Income: False |
| Listing Date: 16 Jun 2022 |
| Ticker: PAEM |
| ISIN: IE000PJL7R74 |
This investment vehicle offers exposure to a diversified portfolio of large and mid-cap companies across various emerging market economies. Its core strategy is to track an index that specifically selects and weights constituents to align with the objectives of the Paris Agreement. This means the underlying portfolio is designed to be on a decarbonization trajectory consistent with limiting global warming to 1.5°C above pre-industrial levels. The methodology involves significantly reducing greenhouse gas intensity compared to a standard emerging markets benchmark and excluding companies involved in controversial activities or those with high carbon emissions, such as fossil fuels, while increasing exposure to companies contributing to the climate transition.
By focusing on companies that are either leading in climate solutions or are actively managing their transition to a low-carbon economy, the fund aims to capture opportunities arising from the global shift towards sustainability. This approach can also offer a degree of risk mitigation against potential climate-related financial shocks, such as stricter environmental regulations or shifting consumer preferences. Investors gain access to the dynamic growth potential inherent in emerging markets—driven by favorable demographics, urbanization, and a growing middle class—but through a lens that prioritizes environmental stewardship and long-term resilience.
This fund is designed for investors who want to combine the high-growth potential of emerging market equities with a strong commitment to sustainable and climate-conscious investing. It provides a rules-based, transparent, and cost-effective solution for integrating climate objectives into a core emerging market allocation. By investing in firms poised to thrive in a decarbonizing world, the strategy seeks to deliver competitive financial returns while contributing positively to the global climate agenda, making it suitable for those with a long-term investment horizon and a preference for ESG-integrated portfolios.
