AMUNDI S&P 500 CLIMATE PARIS ALIGNED PAB UCITS ETF ACC

Issuer: Amundi ETF

Asset Class: Equity

TER: 7bps

Trading Currency: GBP

Pays Income: False

Listing Date: 18 Feb 2025

Ticker: CLMT

ISIN: IE000O5FBC47

This investment vehicle offers a strategic approach for environmentally conscious investors to gain exposure to the U.S. large-cap equity market. The fund is designed to closely track the performance of the S&P 500 Paris-Aligned Climate Index, which comprises companies from the S&P 500 that are collectively aligned with the objectives of the Paris Agreement on climate change. Specifically, it targets the long-term goal of limiting the global temperature increase to 1.5°C above pre-industrial levels. By integrating this climate-focused methodology, the product provides a core portfolio holding that not only captures the potential of leading American corporations but also actively addresses climate-related risks and opportunities, making it a suitable option for those looking to decarbonize their equity allocation.

The underlying index employs a rigorous selection and weighting process to meet its climate objectives. It begins by applying exclusions based on business activities, removing companies involved in controversial weapons, tobacco, and fossil fuels, as well as those failing to comply with the principles of the UN Global Compact. Following these exclusions, the remaining constituents are re-weighted to achieve several key targets: a significant immediate reduction in carbon intensity compared to the parent index, a self-decarbonization pathway of at least 7% annually, and increased exposure to companies that are contributing positively to the climate transition. This forward-looking construction aims to mitigate transition risks associated with climate change while capitalizing on the growth potential of companies leading in sustainability and innovation.

For investors, this product presents a compelling proposition to align their financial goals with global climate action. It allows for participation in the growth of the U.S. economy through a diversified basket of large-cap stocks, while simultaneously ensuring the portfolio is structured to be resilient in a transitioning, low-carbon world. The physical replication strategy means the fund holds the actual shares of the constituent companies, providing transparency and direct ownership. It is an ideal instrument for long-term investors who prioritize both financial returns and environmental stewardship, offering a transparent and efficient way to build a more sustainable core U.S. equity position.