Invesco S&P 500 Net Zero 2050 Paris-Aligned ESG UCITS ETF Acc
| Issuer: Invesco |
| Asset Class: Equity |
| TER: 9bps |
| Trading Currency: GBX |
| Pays Income: False |
| Listing Date: 30 Jan 2025 |
| Ticker: SCTP |
| ISIN: IE000N1ZEIG9 |
This fund offers investors a way to gain exposure to the core US large-cap equity market while simultaneously adhering to stringent climate-focused objectives. It is designed to track the S&P 500 Net Zero 2050 Paris-Aligned ESG Index, which reweights constituents of the traditional S&P 500 to align with the goals of the Paris Agreement. The strategy focuses on significantly reducing greenhouse gas emissions and positioning the portfolio for a future net-zero economy, making it an ideal core holding for environmentally conscious investors seeking broad market participation in US equities.
The underlying index employs a sophisticated methodology that targets a substantial reduction in carbon intensity compared to the parent index and follows a self-decarbonization pathway of at least 7% annually. It achieves this by excluding companies involved in controversial weapons, thermal coal, and tobacco, as well as those that do not align with the United Nations Global Compact principles. The remaining companies are then weighted to meet the climate objectives, ensuring the portfolio is on a trajectory consistent with limiting global warming to 1.5°C above pre-industrial levels. This approach provides a tangible link between an investment portfolio and real-world climate action.
This financial product is particularly suitable for long-term investors who want to decarbonize their portfolios and integrate robust ESG criteria without sacrificing exposure to leading American companies. As an accumulating share class, all dividend income is automatically reinvested back into the fund, which can enhance compound growth over time. It serves as a strategic tool for those looking to build a sustainable portfolio that not only seeks capital appreciation but also contributes to the global transition towards a more sustainable and low-carbon future.
