Deka has launched five environmental, social and governance (ESG) ETFs as part of a climate change suite.

The range is listed on the Stuttgart Stock Exchange and Xetra with total expense ratios ranging between 0.2% and 0.25%

The suite includes:

  • Deka MSCI Germany Climate Change ESG UCITS ETF (D6RT)
  • Deka MSCI EMU Climate Change ESG UCITS ETF (D6RS)
  • Deka MSCI Europe Climate Change ESG UCITS ETF (D6RR)
  • Deka MSCI USA Climate Change ESG UCITS ETF (D6RQ)
  • Deka MSCI World Climate Change ESG UCITS ETF (D6RP)

Tracking MSCI climate change ESG indices, the ETF range considers the effects of climate change and the necessary transition to a low-carbon economy.

They offer exposure to companies within the regions of Germany, eurozone, Europe, USA and the world.

The companies are included in the benchmarks if their carbon dioxide emissions are below MSCI’s threshold and are adapting to climate change.

Companies with sustainable business models are then overweighted in the indices.

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Georg Kayser (pictured), head of institutional ETF sales at Deka, commented: “With the Deka climate change ETF range, we support our investors in achieving their climate goals, building climate-robust portfolios and systematically integrating a measurable CO2 reduction into their strategies.

“The carbon dioxide footprint for the ETFs are significantly lower than that of their MSCI parent indices with a reduction in emissions for all five ETFs being more than 50%.”

Following the introduction of the EU Climate Transition benchmark (CTB) and the EU Paris-aligned benchmark (PAB) last year, major index providers including MSCI, S&P Dow Jones Indices, FTSE Russell and Solactive all launched index suites which implement the new standards set by the European Union.

A number of ETF issuers have looked to track these new indices with Amundi and Lyxor both launching ETF ranges.

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