UBS ETFRetail Investors in the UK:
UBS ETF (IE) MSCI Japan Climate Paris Aligned UCITS ETF (JPY) A-acc
Asset Class: Equities
Sustainable investment objective of the financial product
- The sub-fund has carbon reduction as the objective and an index has been designed as a reference benchmark. The Investment Manager aims to achieve the investment objective of the Fund while incorporating sustainability into the investment process. The Investment Manager defines sustainability as the ability to leverage the Environmental, Social and Governance (ESG) factors of business practices seeking to generate opportunities and mitigate risks that contribute to the long-term performance of issuers (“Sustainability”). ESG integration can also identify opportunities for engagement to improve the company’s ESG risk profile and thereby mitigate the potential negative impact of ESG issues on the company’s financial performance.
- The sub-fund is accordingly classified as an ""Article 9 Product"" pursuant to the Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial sector (SFDR).
- Climate Criteria and risks are considered as part of the Index selection process.
- The objective of the Fund is to seek to track the equity market performance of global developed countries based companies which form part of the index with a focus on sustainable investment considerations defined by the Paris Agreement and specific exclusions of companies involved in controversial weapons, environmental, social and governance (""ESG"") controversies, tobacco, environmental harm, thermal coal mining, oil & gas related activities and power generation. ""
- The Fund is subject to the risk that its climate-focused investment strategy may select or exclude securities of certain issuers for reasons other than investment performance considerations.
- The Fund seeks to achieve the objective by tracking the Index and, with regard to the climate criteria, giving exposure to global companies which are meeting or working towards the climate goals and the minimum standards set down in the EU Climate Regulations and following the recommendations of the TCFD on carbon reduction and transition objectives towards a more sustainable and a lower carbon economy while aligning with the Paris Agreement requirements.
- It does so by tracking the MSCI World Climate Paris Aligned Index. The Index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements. The Index seeks to achieve this through overweighting companies on a credible path to de-carbonisation or offering green solutions, while also underweighting companies that are poorly positioned for the transition to a lower-carbon economy and by limiting exposure to growing physical risk.
- The methodology of the construction of the Index is available on the MSCI internet website:https://www.msci.com/index-methodology
- Additional information about the Index can be found under:https://www.msci.com/esg/climate-paris-aligned-indexes
Data sources & processing
The index provider uses MSCI ESG research as a third-party provider for the ESG characteristics.
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