Climate-focused Exchange-Traded Fund debuts
New Easy Low Carbon 3TF Focuses on Sustainable Investing
The New Easy Low Carbon 300 World PAB UCITS ETF, listed on Euronext Paris and Xetra since June 29, 2021, is an exchange-traded fund (ETF) that focuses on companies contributing to a low carbon economy. While the exact composition of this ETF is not publicly disclosed, industry standards suggest that it likely adheres to the following key criteria:
- Investment in "Green" Companies: The ETF is likely to invest in companies that derive a significant portion of their revenue from environmentally sustainable activities, such as renewable energy production, energy efficiency technologies, low carbon or carbon reduction technologies, and sustainable resource management.
- Revenue Thresholds: To qualify as a "green" or low carbon company, a minimum percentage of revenue from green activities is often required. This could mean that at least 50% or more of a company's revenue comes from products or services that contribute directly to climate change mitigation or adaptation.
- Exclusion of High Carbon Emitters: The ETF likely excludes companies with significant revenues from fossil fuels, high carbon emissions, or other activities detrimental to climate targets.
- Carbon Intensity Metrics: Metrics like the Weighted Average Carbon Intensity (WACI) are frequently used to measure the fund's exposure to carbon emissions relative to revenues. Lower WACI scores indicate a more climate-friendly portfolio.
For a comprehensive understanding of the New Easy Low Carbon 300 World PAB UCITS ETF's eligibility and revenue composition criteria, it is recommended to consult the ETF provider's official prospectus or index methodology documents. These documents typically specify the revenue thresholds from approved green activities, ESG rating filters, carbon intensity limits, and exclusion criteria for controversial sectors.
Investors should note that while this ETF aligns with EU regulatory criteria targeting companies with low carbon footprints and positive environmental impacts, the specific criteria for selection may not be fully detailed. It is essential to review the ETF's official factsheet or prospectus from the issuer’s website or regulatory filings for a complete understanding of the investment strategy.
- This ETF's approach to sustainable investing, as seen in its focus on low carbon companies, extends to the scientific field of environmental science, particularly in climate-change mitigation and adaptation.
- To ensure optimal returns while maintaining their low carbon footprint, investors in the New Easy Low Carbon 300 World PAB UCITS ETF could allocate funds to other sectors besides climate-change and environmental science, such as finance or technology, provided these sectors align with the ETF's investment strategy.
- As the ETF continues to develop and grow, it may attract interest from universities and research institutions working in the field of environmental science, as they seek to participate in and contribute to the finance and investing landscape dedicated to addressing climate-change and preserving the environment.
