L&G Europe Equity (Responsible Exclusions) UCITS ETF

Issuer: L&G ETFs

Asset Class: Equity

TER: 16bps

Trading Currency: EUR

Pays Income: False

Listing Date: 17 Sep 2019

Ticker: RIEU

ISIN: IE00BKLTRN76

This fund offers targeted exposure to European companies that are on a clear decarbonisation trajectory, aligning with the Paris Agreement's goal of limiting global warming. It is designed for investors who want to integrate climate-conscious principles into their core European equity holdings. The strategy involves tracking an index that significantly reduces carbon intensity and potential emissions compared to a standard market benchmark. It achieves this by selecting companies demonstrating a commitment to lowering their carbon footprint, thereby avoiding businesses with high climate-related risks and instead focusing on those poised to thrive in a low-carbon economy.

The underlying index employs a rules-based methodology, starting with a broad universe of European stocks and applying stringent screens. It excludes companies involved in controversial weapons, thermal coal, and other activities inconsistent with ESG principles. More importantly, the index uses forward-looking climate data to overweight companies leading in the green transition and underweight laggards. This results in a portfolio that is tilted away from carbon-intensive sectors like traditional energy and heavy industry, and towards more sustainable sectors such as technology, healthcare, and consumer goods. This construction provides a diversified yet climate-optimised approach to European market investing.

This product serves as a compelling option for long-term, environmentally-conscious investors. By focusing on companies that are proactively managing their climate impact, the investment not only helps mitigate portfolio risks associated with the global energy transition but also captures growth opportunities from innovation in sustainable technologies and business models. It is suitable as a core holding for those seeking to build a resilient, future-proofed portfolio that generates competitive financial returns while contributing positively to global climate objectives.