State Street Global Advisors (SSGA) has expanded its Paris-aligned benchmark (PAB) climate range with the launch of an emerging markets ETF.
The SPDR MSCI Emerging Markets Climate Paris Aligned UCITS ETF (SPF7) is listed on the Deutsche Boerse, Borsa Italiana, the London Stock Exchange and Euronext Amsterdam with a total expense ratio (TER) of 0.23%.
SPF7 tracks the MSCI Emerging Markets Climate Paris Aligned index investing in large and mid-cap securities across 24 countries.
The index incorporates the Task Force on Climate-Related Financial Disclosures (TCFD) and requires a 50% reduction in greenhouse gas emissions compared to the parent index followed by a 7% year-on-year reduction.
Companies involved in controversial weapons will be excluded along with securities that derive more than 1% of their revenue from thermal coal mining and extraction, 10% from petrochemicals of 50% from power generation from thermal coal, oil or natural gas.
SPF7 is labelled Article 8 under the Sustainable Finance Disclosure Regulation (SFDR) instead of Article 9 which has been the ‘article’ of choice for many issuers when launching climate ETFs.
It takes the number of ETFs in SSGA’s PAB ETF range to six.
In March, the issuer unveiled four PAB ETFs, the SPDR MSCI Europe Climate Paris Aligned UCITS ETF (SEPA), the SPDR MSCI USA Climate Paris Aligned UCITS ETF (SPUD), the SPDR MSCI World Climate Paris Aligned UCITS ETF (SWPA) and the SPDR MSCI Japan Climate Aligned UCITS ETF (SPF6).
A month later it launched the SPDR MSCI ACWI Climate Paris Aligned UCITS ETF (SAPA).
SSGA’s launch is the latest in the rapidly expanding universe of climate-focused ETFs. In June, Invesco launched the Invesco MSCI Emerging Market ESG Climate Paris Aligned UCITS ETF (PAEM), a climate strategy that incorporates ESG metrics.
- MSCI warns companies will burn through Paris carbon emissions budget by 2027
- LGIM’s Europe and US equity ETFs become Paris-aligned after index changes
- BlackRock launches Paris-aligned corporate bond ETF
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