BlackRock launches five climate transition ETFs in Europe

BlackRock has rolled out a five-strong range of climate transition exchange traded funds aiming to provide investors with access to “companies leading in the transition to a low-carbon economy”.

The Ireland-domiciled iShares MSCI Climate Transition Aware Ucits ETFs are classified under Article 8 of the EU’s Sustainable Finance Disclosure Regulation.

Each of the five ETFs has a different geographic focus: global, Europe, US, Japan, and the European economic and monetary union.

The products track MSCI transition-aware select benchmarks and invest in companies with “forward-looking science-based targets and that generate green revenues”, BlackRock said.

This article was previously published by Ignites Europe, a title owned by the FT Group.

The $10.5tn asset manager described low-carbon transition as a “series of profound shifts playing out over decades” that are “reshaping production and consumption and spurring vast capital investment”.

BlackRock’s Investment Institute has identified several “mega forces” reshaping markets, such as technological innovation, geopolitical fragmentation and ageing populations.

Manuela Sperandeo, head of BlackRock’s iShares product for Europe and the Middle East at the asset manager, said: “The transition to a low-carbon economy is set to spur a significant reallocation of capital as energy systems and technologies continue to evolve and develop.

“With the launch of the climate transition-aware range, we are expanding the choice we offer clients seeking to mitigate the investment risks and capture the opportunities from this transition.”

Sebastian Lieblich, head of index products for Europe, the Middle East and Africa at MSCI, said: “Investors are increasingly looking for data and tools to help them adapt their strategies to better manage the challenges and opportunities stemming from the transition to a low-carbon economy.”

He added that the methodology of the MSCI indices tracked by the new BlackRock ETFs “can play a central role for investors looking to factor these parameters in their decision making”.

The ETFs have been registered for sale across much of Europe, including France, Germany, Italy, Spain and the UK.

*Ignites Europe is a news service published by FT Specialist for professionals working in the asset management industry. Trials and subscriptions are available at igniteseurope.com.