NZAC Profile
The SPDR MSCI ACWI Climate Paris Aligned ETF aims to provide investors with exposure to a global equity portfolio that aligns with the Paris Agreements climate goals. The fund generally allocates at least 80% of its total assets to securities that are part of its benchmark index. This index is specifically constructed to meet and exceed the requirements of a "Paris-Aligned Benchmark" under the European Union's Benchmarks Regulation (EU BMR). Such a benchmark is designed to support the global effort to limit the rise in average temperatures to well below 2 degrees Celsius above pre-industrial levels.
The underlying index of the fund incorporates a broad range of global equities, including both developed and emerging market stocks, that meet stringent climate alignment criteria. These criteria include considerations for carbon intensity reduction, climate risk management, and alignment with sustainable practices. By investing in companies that are proactive in addressing climate change, the fund seeks to offer investors a means to contribute to and benefit from the transition towards a low-carbon economy.
The funds investment strategy focuses on selecting securities from a diverse array of sectors and regions, ensuring that the portfolio remains representative of global equity markets while adhering to strict climate alignment standards. The index aims to achieve lower carbon exposure compared to traditional benchmarks, thus reducing the portfolio's carbon footprint and enhancing its alignment with climate goals.
Investors in the SPDR MSCI ACWI Climate Paris Aligned ETF can expect a portfolio that reflects a commitment to environmental sustainability and climate risk mitigation. The fund's approach offers a way for investors to align their portfolios with global climate objectives while gaining exposure to a wide range of international equities. As climate-related regulations and standards evolve, the fund will continue to adapt to maintain its alignment with the Paris Agreements goals and provide relevant investment opportunities.
|
