ISHARES € CORP BOND ESG PARIS-ALIGNED CLIMATE UCITS ETF EUR (DIST)
AUM (USD m):
Share Class Currency:
30 Nov 2023
The Bloomberg MSCI Euro Corporate Climate Paris Aligned ESG Select Index is designed to meet and exceed the minimum standards of the EU Paris Aligned Benchmark (PAB) label. The index sets an initial 50% decarbonization of absolute GHG emissions and carbon intensity relative to the standard Bloomberg Euro Corporate Index, followed by an annual 10% decarbonization trajectory of both measures. The index uses an optimization approach that aims to increase the weight of issuers that meet carbon reduction targets, increase the weight of green revenue versus fossil-fuel based revenue, and increase the ESG score of the index, while minimizing active total risk. To be included, securities must be investment grade, fixed-rate, EUR-denominated, corporate bonds with a minimum MSCI ESG Rating of B. The index excludes issuers with a “red” MSCI ESG Controversy Score and negatively screens issuers that are involved in business activities that are restricted per Article 12 of the Delegated Acts. Additionally, issuers with involvement in nuclear weapons, civilian firearms, and unconventional oil and gas are also excluded. The index was created in March, 2022 with history backfilled to August, 2019.
Fund Fights: Tabula IG Bond Paris-aligned Climate (TABC) vs iShares € Corp Bond ESG Paris-Aligned Climate (CBUJ)
Fund Fights is a series where ETF Stream analyses the strengths and weaknesses of two ETFs. This month, it is the battle of the Paris-aligned Europe corporate bond ETFs as Tabula’s TABC goes head-to-head with BlackRock’s CBUJ