Invesco MSCI Europe ESG Climate Paris Aligned UCITS ETF Acc
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 16bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 09 Dec 2021 |
| Ticker: PAES |
| ISIN: IE000TI21P14 |
This fund offers investors a targeted approach to European equity markets, focusing on companies aligned with the climate objectives of the Paris Agreement. The core of the strategy is to provide exposure to large and mid-cap European companies that are actively contributing to the transition towards a low-carbon economy. It is specifically designed for those who wish to decarbonize their portfolios and invest in businesses demonstrating a clear commitment to reducing their carbon footprint, in line with the ambitious goal of limiting global warming to 1.5°C above pre-industrial levels. This makes it a compelling option for investors seeking both financial returns and a measurable positive environmental impact.
The underlying index employs a rigorous, rules-based methodology to construct its portfolio. It begins by excluding firms involved in controversial sectors such as tobacco, controversial weapons, and thermal coal. Following these exclusions, the index is optimized to significantly reduce its exposure to greenhouse gas emissions and potential emissions from fossil fuel reserves compared to the broader market. The methodology aims for a 50% reduction in carbon intensity versus the parent index and an additional 7% year-on-year self-decarbonization trajectory. This process results in a portfolio that is not only less carbon-intensive but also has an increased exposure to companies generating green revenues and managing climate-related risks effectively.
By investing in this product, individuals can secure a core European equity holding that is fundamentally forward-looking and sustainable. It provides a diversified basket of leading European companies that are not just navigating but also capitalizing on the global energy transition. It represents a strategic allocation for long-term, climate-conscious investors who believe that sustainability and robust governance are key drivers of future performance. The accumulating share class structure further enhances potential returns by automatically reinvesting any dividends, facilitating long-term capital growth.
