Alternative Investments/ESG: BlackRock Launches Two New Paris Aligned UCITS ETFs
The new launches bring BlackRock’s range of Paris-aligned ETFs to four.
BlackRock has launched the iShares MSCI EMU Paris-Aligned Climate UCITS ETF (EMPA) and the iShares MSCI Europe Paris Aligned UCITS ETF (EUPB) both of which are Paris-aligned climate ETFs. These ETFs are listed on the Euronext Amsterdam exchange effective July 29. (ETF Stream)
The new ETFs come on the heels of BlackRock’s first Paris-aligned UCITS ETFs launched in April 2021. They both feature a total expense ratio of 0.15%.
BlackRock ETFs: Reduction of climate risks
BlackRock said in a statement: “New climate-oriented investments are now available to investors to help with the economic transition, and one widely available means for clients to effect change right now is through ETFs.”
“The EU’s climate benchmarks are designed to reduce exposure to transition and physical climate risks and manage climate change opportunities, as well as help investors seeking to align with a decarbonation trajectory that is compatible with the Paris Agreement.”
The Paris-aligned indices have been designed to align with a 1.5°C scenario, while meeting the minimum standards of the EU Paris-Aligned Benchmark label and staying as close as possible to the parent benchmark, offering broad and diverse exposures.
This requires an immediate carbon intensity reduction of at least 50% versus the parent universe at inception, followed by a minimum 7% decarbonisation year-on-year reduction.
The new ETFs are categorised as Article 9 under the Sustainable Finance Discloure Regulation, consistent with BlackRock’s expectation that 70% of its fund launches and repositionings in Europe this year will qualify as Article 8 or 9.
Related Story: BlackRock Adds Two ESG Fixed Income ETFs
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