DWS has launched three Paris-aligned Benchmark (PAB) climate ETFs providing exposure to US, European and Japanese equities.
The Xtrackers USA Net Zero Pathway Paris Aligned UCITS ETF (XNUS), the Xtrackers Europe Net Zero Pathway Paris Aligned UCITS ETF (XEPA) and Xtrackers Japan Net Zero Pathway Paris Aligned UCITS ETF (XNJP) are listed on Deutsche Boerse and the London Stock Exchange.
XNUS has a total expense ratio (TER) of 0.10% while XEPA and XNJP have TERs of 0.15%.
The ETFs track the Solactive-ISS-ESG Net Zero Pathway indices of their corresponding region and looks to reduce emissions in line with the objectives of the Paris Climate agreement.
This means the ETFs will target a 50% reduction in carbon intensity compared to a traditional index as well as a reduction in carbon intensity of 7% per year.
Furthermore, the ETFs will consider the recommendations of the Institutional Investors Group on Climate Change, weighting constituents based on their commitment to the Science Based Target Initiative and the Task Force on Climate-related Financial Disclosures, as well as their ‘green’ revenues.
This means companies with high standards of climate reporting and adoption of science-based targets will be overweighted.
All three ETFs will also use criteria aligned with the United Nations Sustainable Development Goals and are listed as Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).
Simon Klein, global head of passive sales at DWS, said: “We see impact investing as one of the major future tasks for asset managers. With the new ETFs, we are expanding our range of climate agreement-oriented ETFs to include important investment regions with a view to performance potential and diversification.”
DWS launched its PAB ETF range in March with the unveiling of the Xtrackers EMU Net Zero Pathway Paris Aligned UCITS ETF (XNZE) and the Xtrackers World Net Zero Pathway Paris Aligned UCITS ETF (XNZW).
Last month, new DWS CEO Stefan Hoops hit back at media coverage surrounding the group’s greenwashing allegations.
It came after DWS’s assets under management fell from €902bn to €833bn in Q2.