UBS launches five new ETFs focussed on companies aligned with Paris Climate Agreement
Five new exchange traded funds issued by UBS Global Asset Management have been tradable on Xetra and Börse Frankfurt since Wednesday.
The new funds provide investors with the opportunity to participate in the performance of large and medium-sized companies that are driving the decarbonisation of the economy. Investors can choose to focus on individual countries such as Japan or the US, or focus on companies based in the European Monetary Union, Europe or industrialised nations worldwide.
To be included in the index, companies must not have significant business activities in tobacco, thermal coal, weapons, oil and gas. The aim is to limit global warming to a maximum of 1.5°C. To achieve this, companies should reduce their carbon emissions by ten per cent annually and reduce physical risks from extreme weather conditions by at least 50 per cent. Companies that benefit from measures to combat climate change and for which new business opportunities arise as a result are overweighted.