Alternative Investments/ESG: New Paris-Aligned World Equity ETF From Goldman Sachs
The new ETF listed on the LSE and Deutsche Boerse.
Goldman Sachs Asset Management has launched the Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF (WRLD) on the London Stock Exchange and Deutsche Boerse. WRLD is labelled ‘light green’ Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). (ETF Stream)
The Paris Agreement is an international treaty on climate change that has the objective of keeping global temperatures below 1.5°C compared to pre-industrial levels by limiting greenhouse gas emissions.
Investment products that are “Paris-aligned” are designed to help investors manage climate transition risks by shifting exposure away from companies or industries that have business models that are inconsistent with a low-carbon future.
Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF (WRLD)
The ETF tracks the Solactive ISS ESG Developed Markets Paris-Aligned Benchmark USD index comprised of global developed markets equities, meeting the minimum requirement for the European Union’s Paris-aligned benchmarks (PAB).
The index sets an initial 50% decarbonisation target of absolute greenhouse gas emissions relative to the parent index, followed by an annual 7% decarbonisation trajectory of absolute greenhouse emissions.
The ETF has a total expense ratio of 0.24%.
Peter Thompson, head of Goldman Sachs Asset Management European ETF business, said: “Investors are increasingly focused on obtaining lower carbon intensity exposure to equity markets through simple, low fee and transparent products. We are excited to introduce WRLD which can contribute towards our clients’ portfolio construction and responsible investing objectives. We look forward to bringing further ETFs with ESG and sustainable characteristics to the market as we continue to expand our ETF offering to European clients.”
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