BlackRock has bolstered its Environmental, Social and Corporate Governance (ESG)-related products range by launching new iShares MSCI ACWI Low Carbon Target ETF (CRBN) on the New York Stock Exchange.
The new fund seeks to track the results of the MSCI ACWI Low Carbon Target Index and addresses two dimensions of carbon exposure – carbon emissions and fossil fuel reserves.
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The ETF has been created for individuals and institutions interested in environmental sustainability without divestment and offers transparency to the carbon footprint of their investments.
In addition, CRBN seeks to provide global exposure to global equity by overweighting companies with low carbon emissions relative to sales and those with low potential carbon emissions per dollar of market capitalization.
It will also incorporate a carbon exposure reduction strategy.
BlackRock said that Low Carbon Target Index will achieve maximum carbon exposure reduction given a specific tracking error target.
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By GlobalDataDaniel Gamba, head of BlackRock’s iShares Americas institutional business, said: "With iShares MSCI ACWI Low Carbon Target ETF, we are helping investors to look at socially responsible investing through the lens of long-term investment returns and in the process helping them to take action with their portfolios. This is particularly relevant for official institutions, pensions, foundations and endowments who are interested in pursuing environmental sustainability strategies without divestment."
Sam Gallo, CIO of the University System of Maryland Foundation, said: "The iShares MSCI ACWI Low Carbon Target ETF is a low-cost, investment solution that allows us to maintain full exposure to global equities while incorporating a carbon exposure reduction strategy."
