Europe’s largest asset manager Amundi has expanded its responsible offering with the launch of three new ETFs tracking future EU Paris-Aligned Benchmarks (PAB), designed to support the achievement of the objectives of the Paris Agreement by limiting global warming below 2°C above preindustrial levels.

The new ETFs are competitively priced, starting with an ongoing fee of just 18 basis points.

In 2018, as part of a three-year action plan, Amundi strengthened its commitment to align its fiduciary and social responsibilities and to meeting its clients’ ESG expectations. According to the firm, Amundi recognises the vital role of the investment industry in delivering the goals of the 2015 Paris Agreement.

Given the above, Amundi has announced the expansion of its climate range of ETFs with three Paris-Aligned funds (future EU PAB label) offering index investors a new solution in climate positive investments. These are:

• Amundi Euro iSTOXX Climate Paris Aligned PAB UCITS ETF
• Amundi MSCI Europe Climate Paris Aligned PAB UCITS ETF
• Amundi MSCI World Climate Paris Aligned PAB UCITS ETF

This new family of Paris-Aligned ETFs is intended to meet the needs of investors seeking to respond quickly to the climate emergency. The funds incorporate a 50 percent carbon intensity reduction along with additional activity exclusions. It is fully complementary with the existing Amundi climate change ETFs, which are expected to meet the criteria of the EU Climate Transition Benchmark (CTB) label and designed for those investors wishing to transition to a low carbon economy while maintaining broad market exposure.

Fannie Wurtz, Head of Amundi ETF, Indexing and Smart Beta, said in a statement: “The creation of the new Climate benchmarks by the European Union supports our long-held belief that index management has a critical role to play in accelerating adoption of responsible investing and the delivery of climate objectives; putting the power in index investors’ hands.”