Global investment manager Franklin Templeton has launched a new emerging markets Paris-aligned climate ETF for European investors. It is the fourth in the firm’s climate ETF range, with this new strategy looking to offer a “core sustainable solution to meet decarbonisation goals”. The sustainable ETF is classified as Article 8 under EU SFDR, and will track the MSCI Emerging Markets Climate Paris Aligned Index. It will include large and mid-cap stocks across 24 emerging markets transitioning to a low carbon economy, and is designed to support investors targeting a reduction in exposure to physical climate risks. Caroline Baron, Head of ETF Distribution, EMEA at Franklin Templeton, said: “Providing access to distinct opportunities in emerging markets at a competitive fee, this ETF reduces climate risk exposure by investing in companies providing solutions to mitigate climate change as well as those improving their resilience to its consequences, giving them a long-term competitive advantage. Emerging markets play an important role in achieving net zero [and] we believe this new ETF can be a core sustainable investment solution for those looking to tap into this exciting growth story.”
