By Susanna Rust2020-12-18T11:01:00+00:00
Legal & General Investment Management (LGIM) has launched a climate transition index fund for defined benefit and defined contribution investors.
The fund is based on FTSE Russell’s FTSE Global Equity Index Series, with constituents adjusted based on their fossil fuel reserves, carbon emissions and green revenues.
The fund also takes into account Transition Pathway Initiative analysis of how the world’s largest and most carbon intensive public companies are managing the climate transition. It excludes fossil fuels, tobacco, controversial weapons and UN Global Compact violators.
LGIM said the aim of the index fund is “to provide sophisticated and diversified exposure to companies that are more aligned to the Paris Agreement and the benefits of the climate transition, while going beyond a narrow focus on carbon emissions and fossil fuel”.