BlackRock has launched a 'climate aware' range of exchange traded funds.
The set of five iShares MSCI Climate Transition Aware UCITS ETFs claim to be for investors interested in companies with "science based targets that generate green revenues".
It comes after the firm carried out a survey of 200 global investors in the summer of 2023 which showed 56 per cent had plans to increase their allocations to transition strategies in the next three years with almost half saying it was their top priority.
Manuela Sperandeo, BlackRock’s Europe and Middle East head of iShares product said: "Innovation is central to BlackRock’s approach to developing products and solutions for clients, as investors become more sophisticated in their investment objectives.
"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."
Companies are selected for the range if they make at least 20 per cent of their revenues from green revenues.
Sebastian Lieblich, head of EMEA index products, 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.
"Clarity on the commitments of businesses to reduce their carbon footprint through published targets, as well as their revenues from green businesses are key in this process."
tara.o'connor@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
