Goldman Sachs AM has expanded its ETF range for European investors with the Goldman Sachs Paris-Aligned Climate World Equity UCITS ETF.
The new vehicle, listed on the London Stock Exchange from today (13 October), tracks the Solactive ISS ESG Developed Markets Paris-Aligned benchmark index.
The index is composed of global developed market equities designed to meet the minimum requirements for EU Paris-aligned benchmarks.
By shifting exposure away from companies or industries that have business models that are inconsistent with a low carbon future, the fund aims to help investors manage climate transition risks.
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The minimum standards of the ETF's benchmark require companies within the index to show a 7% year-over-year reduction in carbon emissions intensity, in addition to excluding certain sectors and targeting an overall greenhouse emissions intensity 50% lower than the parent index.
Peter Thomson, head of European ETFs at Goldman Sachs AM, said: "Investors are increasingly focused on obtaining lower carbon intensity exposure to equity markets through simple, low fee and transparent products."
"We look forward to bringing further ETFs with ESG and sustainable characteristics to the market as we continue to expand our ETF offering to European clients."
The newly-launched ETF presents a total expense ratio of 0.24%.
