AMUNDI MSCI EUROPE CLIMATE PAB UCITS ETF ACC

Issuer: Amundi ETF

Asset Class: Equity

TER: 12bps

Trading Currency: GBP

Pays Income: False

Listing Date: 09 Feb 2024

Ticker: EABE

ISIN: LU2130768844

This financial instrument offers investors a targeted approach to European equity markets, focusing specifically on companies that are aligned with the climate objectives of the Paris Agreement. By tracking a Paris-Aligned Benchmark (PAB), it provides exposure to a portfolio constructed to meet stringent decarbonization goals. The core strategy involves a significant reduction in greenhouse gas emissions intensity compared to a standard broad market benchmark. This makes it an appropriate choice for individuals seeking to integrate strong environmental criteria into their investment portfolios, directing capital towards companies actively contributing to or enabling the transition to a low-carbon economy.

The underlying index comprises large and mid-capitalization stocks from 15 developed European countries. The selection methodology is rigorous, applying both negative and positive screening. It excludes companies with significant business involvement in fossil fuels (thermal coal, oil, and gas), controversial weapons, and tobacco, as well as those that violate established international norms on environmental protection and human rights. Concurrently, the index increases its allocation to companies that are demonstrating climate leadership and generating substantial 'green revenues' from products and services that have a positive environmental impact, thereby rewarding firms that are leading the charge in sustainability.

This product is well-suited for long-term investors aiming to achieve capital growth while ensuring their investments contribute to a more sustainable future. It provides a diversified and cost-effective way to gain exposure to leading European companies that are not only managing their climate-related risks but are also strategically positioned to capitalize on the opportunities arising from the global energy transition. The accumulating share class structure further enhances its appeal for those focused on long-term wealth compounding, as all dividend income is automatically reinvested within the portfolio.