Industry Updates

Invesco upgrades five Paris-Aligned ETFs to SFDR Article 9

Following European Commission’s SFDR clarification

Lauren Gibbons

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Invesco has reclassified five Paris-Aligned ESG ETFs from Article 8 to Article 9 under the Sustainable Finance Disclosure Regulation (SFDR).

The move follows the European Commission’s clarification that funds adhering to Paris Aligned Benchmarks (PAB) can be classified under Article 9 last year.

The asset manager also upgraded its global clean energy ETF after its index methodology was tightened.

The upgraded ETFs are:

The move comes after the European Commission delivered a long-awaited clarification on the SFDR last April.

Invesco also switched the replication method of its emerging markets Paris-Aligned ETF to a full replication strategy a sampling strategy.

The Invesco MSCI Emerging Markets ESG Climate Paris Aligned UCITS ETF (PAEM) will switch to a fully replicating strategy to more accurately track the reference index.

Meanwhile, Invesco said the board has decided to upgrade the Invesco Global Clean Energy UCITS ETF (GCLE) from Article 8 to an Article 9 classification under SFDR.

The ETF aims to mirror the performance of the Wilder Hill New Energy Global Innovation index, which includes global companies that are advancing cleaner and renewable energy solutions, efficiency, and conservation.

Recently, the index updated its criteria to exclude companies that lack strong governance or harm environmental goals.

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