European asset manager Amundi has launched a Euro corporate bond ETF, which tracks a Paris-Aligned Benchmark Index.
The Amundi EUR Corporate Bond Climate Net Zero Ambition PAB UCITS ETF tracks the Bloomberg MSCI Euro Corporate Paris Aligned Green Tilted Index.
The ETF provides investors with exposure to Euro-dominated Investment Grade Corporate bonds and exercises strict ESG exclusions for companies involved in activities such as gambling, alcohol, tobacco, weapons, civilian firearms, nuclear weapons, unconventional oil and gas revenue, thermal coal power generation and Arctic oil and gas.
The newly available exposure is the result of an index switch and rebranding of the Lyxor ESG Euro Corporate Bond (DR) UCITS ETF that took place earlier this month.
Amundi said the new ETF complies with EU Paris-Aligned Benchmarks requirements, supporting a Net-zero world by 2050 and limiting a global average temperature rise of 1.5%.
It follows a trajectory of a 7% absolute carbon emissions reduction on an annual basis and an immediate reduction of 50% of the carbon intensity compared to the investable universe.
The ETF has ongoing charges of 0.14% and over €900 million in assets under management.
Arnaud Llinas, head of ETF, Indexing and Smart Beta at Amundi, said: “ETFs are important building blocks to support the climate transition for bond portfolios. With this new ETF, we continue to commit to transforming our ETF range to provide investors with a broad range of climate-conscious ETFs, both in equity and fixed income asset classes.”
