New Listing

LGIM launches Japan and Asia-Pacific Paris-aligned climate ETFs

Asia Pacific ex-Japan ETF also launched

Theo Andrew

Aanand Venkatramanan LGIM

Legal and General Investment Management (LGIM) has launched two Paris-aligned ETFs tracking Japan and Asia Pacific ex-Japan equities, ETF Stream can reveal.

The L&G Asia Pacific ex Japan ESG Exclusions Paris Aligned UCITS ETF (RIAG) and the L&G Japan ESG Exclusions Paris Aligned UCITS ETF (RIJG) are listed on the London Stock Exchange, Deutsche Boerse and the SIX Swiss Exchange with total expense ratios (TERs) of 0.16%.

The two ETFs will track Foxberry Sustainability Consensus Pacific ex-Japan Total Return index and the Foxberry Sustainability Consensus Japan Total Return index, respectively, implementing Paris-aligned benchmark (PAB) and ESG exclusion metrics.

In order to meet PAB requirements, The indices will represent a 50% initial greenhouse gas emission reduction relative to their parent indices and will target an additional 7% decarbonisation each year.

LGIM said both RIAG and RIJG will benefit from the “active independent engagement” of the firm’s stewardship team with companies within the index.

Furthermore, the indices will have a sustainability committee to ensure they remain PAB-aligned.

Both ETFs will be labelled Article 9 under the Sustainable Financial Disclosure Regulation (SFDR).

Aanand Venkatramanan (pictured), head of ETFs for EMEA at LGIM, said: “We believe ESG risks are financially material and see responsible investing as the incorporation of ESG considerations into investment decisions.

“The launch of these two new Paris-aligned ETFs is a demonstration of our continued commitment to providing investors with access to a range of strategies that account for ESG risk, an aspect that has become increasingly important for clients.”

The two new ETFs extend LGIM’s range of Paris-aligned climate ETFs after the issuer announced it had made changes to indices of the L&G Europe Equity Responsible Exclusions UCITS ETF (RIEU) and the L&G US Equity Responsible Exclusions UCITS ETF (RIUS), which now meet PAB requirements.

Last month, the LGIM entered the metaverse with the launch of the L&G Metaverse ESG Exclusions UCITS ETF (MTVR) as part of a quadruple thematic launch.

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