New Listing

Goldman Sachs AM launches Paris-aligned global equity ETF

WRLD will be labelled Article 8 under SFDR

Theo Andrew

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Goldman Sachs Asset Management has launched a Paris-aligned climate global equity ETF.

The Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF (WRLD) is listed on the London Stock Exchange (LSE) from today and the Deutsche Boerse from 18 October, with a total expense ratio (TER) of 0.24%.

The ETF will track 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 will set 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.

Unlike Goldman’s competitors’ PAB strategies, which are labelled Article 9 under the Sustainable Finance Disclosure Regulation (SFDR), WRLD will be labelled ‘light green’ Article 8.

Peter Thompson (pictured), 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.”

He added the group will be looking to expand its sustainable and ESG range in the near future.

The launch follows a flurry of PAB ETF releases in recent months as issuers look to meet the demand for investors for ‘dark green’ ESG strategies.

Earlier this month, Amundi “completed” its PAB offering with the launch of the Amundi MSCI ACWI SRI PAB UCITS ETF (WELB), taking its offering to 29 PAB ETFs.

Elsewhere, BNP Paribas Asset Management, DWS, Ossiam and State Street Global Advisors expanded their PAB ranges over the summer.

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