Responsible investment
Outlook: A huge amount of investment is required to meet the goals set out in the Paris Agreement, a shortfall that could provide opportunities for investors.
Preferences: Consider strategies focused on financing the energy transition in addition to long-term portfolio decarbonisation.
Amundi Index MSCI World SRI PAB UCITS ETFManagement fees: 0.18%*
Amundi EUR Corporate Bond Climate Net Zero Ambition PAB UCITS ETFManagement fees 0.14%*
Investors should consider a dual approach to responsible investing: Decarbonisation of portfolios and financing the transition to cleaner energy.
We believe in an integrated net zero framework, embracing alignment and contribution dimensions. This framework should take into account the physical risks (the direct impact of extreme weather events, wildfires etc) and transition risks (the financial, legal, policy and regulatory impact) of climate change.
Decarbonising is a crucial part of limiting climate change to achieve the global net zero ambitions of the Paris Agreement. In equities, we offer a comprehensive range of net zero trajectory solutions to cater to varying investor needs and ambitions. Our Net Zero Ambition ETF range includes Paris Aligned Benchmark (PAB) ETFs, designed to meet the 1.5°C pathway outlined by the Paris Agreement. In fixed income, investors can take a similar approach with an integrated net zero trajectory. There are also options to invest in climate-focused PAB corporate bond indices, which provide for a much lower carbon intensity.
Amundi MSCI World ESG Climate Net Zero Ambition CTB UCITS ETFManagement fees 0.25%*
Amundi Global Aggregate Green Bond 1-10Y UCITS ETFManagement fees 0.15%*
Decarbonisation on its own will not be sufficient to meet global climate goals. A huge amount of investment will be required to meet 2050 net zero targets. Global clean energy spending has to increase to $4.5 trillion per year by 2030, with nearly half of this being dedicated to EM,18 according to recent estimates.
To support investments in clean energy infrastructure and technologies, the Inflation Reduction Act in the US and the Green Deal Industrial Plan in the EU aim to mobilise $400 billion in incentives and €300 billion in tax credits, respectively19.
Climate Transition Benchmark equity ETFs, which are based on the opportunities and risks associated with the transition, can help drive contributions towards the energy transition.
Investors could also consider fixed income instruments as a means to finance green projects, via green bonds in a Green-Tilted Index.
These often deliver a similar duration to the parent indices on top of a greater exposure to green-project financing.
Worldwide emissions trajectory compatible with the objective of the Paris agreement (“1.5oC transition with no limited overshoot”)
Despite challenging market conditions, responsible investment flows have continued to increase and there are several favourable trends that should support its future development. In the long-term, many ESG indices outperform their parent benchmarks, as can be seen with MSCI World indices.
Investors need to address the investment context in a holistic manner to be profitable in the long run. While financial markets bear a higher level of complexity and uncertainty due to both the recent geopolitical and repeated extreme weather events, at Amundi we stand firm in our conviction that responsible investment can deliver potential long-term value to our investors.
Yes
No, it’ll remain the same
No, it’ll decrease
