Franklin Templeton rolls out climate ETFs aligned to Paris accord

climate_change_fundFranklin Templeton has launched two “forward looking” smart beta, climate-focused ETFs in line with a new EU climate benchmark.

The firm said the funds adhere to the Paris decarbonisation goals and track a new Paris-aligned version of the Stoxx Europe 600 and the S&P 500 benchmarks, which offer investors exposure to companies involved in the transition to a low carbon economy.

Managed by Dina Ting and Lorenzo Crosato, the Franklin Stoxx Europe 600 Paris Aligned Climate Ucits ETF and Franklin S&P 500 Paris Aligned Climate Ucits ETF focus on large and mid-cap stocks.

Julie Moret, global head of ESG at the firm, said: “The EU Climate Benchmark regulation suggests we will see a significant uplift in the adoption of climate-aligned investments across European markets, with investors moving away from the notion that they are niche products to building portfolios with sustainable finance at their core.”

The ETFs will first be available to German investors on July 30, before being made available in the UK and Italy the following day.

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