Lyxor, from Société Générale, has announced that he becomes the Europe’s leading supplier to launch a full range of ETFs designed to counter climate change, consistent with carbon emissions reduction targets of the 2015 Paris Agreement.
Mar 30, 2020
Investors will be able to access the exhibitions of European, US, Emerging Market and Global Equities in a simple way. Two of the ETFs (emerging and the United States) were listed on Euronext on March 26 (in euros), and will also be listed on the London Stock Exchange (in dollars) on April 7. Two other ETFs will follow soon, according to Lyxor.
These ETFs replicate the MSCI climate change indices, which take into account the main objectives of the European Union regulations on investment benchmarks as part of the 2018 EU Sustainable Growth Financing Action Plan. The regulatory framework of minimum requirements for these indices implies a reduction in global greenhouse gas emissions 7% per year to achieve net carbon neutrality by 2050.
Most of the main investment indexes currently involve temperature increases of around 4 to 6 degrees Celsius between now and 2100, which “could mean the end of humanity as we know it,” warns the manager. “Redistributing the trillions of dollars from these indices that do not meet environmental targets is critical to the challenge before us,” says Lyxor.
This is the first in a series of Lyxor launches of weather-related ETFs this year. For investors, the end result will be access to the first ETF climate transition ecosystem in Europe.