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Climate Sustainability Impact Investment Instruments
Cyan Reef is not compensated in any form by the product issuers featured. All the opinions and evaluation are our own.
At the climate change conference in Paris 2015, governments committed to keeping the increase in global temperature at 2 degrees or below. This can only be achieved through a decarbonisation of the global economy, aimed at drastically reducing the emission of climate damaging greenhouse gases, in particular CO2. This in turn requires companies to implement a decarbonisation strategy and investors to redirect capital flows towards more sustainable investments.
Already ahead of the Paris conference, some investors were divesting in response to civil-society movements, now, financial markets will start to play a larger role. Climate change is turning into a new risk class and investors will be more accountable for their investment decisions. After all, it is the investor’s choice whether to invest in companies which contribute to the protection of the climate or to place their money in those companies that cause climate change or might even benefit from it.
How Does Climate Themes Work?
The climate-change investment instruments are designed with consideration of both the opportunities and risks associated with transition to a low carbon economy, enabling investors to integrate climate risk considerations in their global equity investment process. Investing in climate change mitigation themed instruments, you facilitate shift from brown to green: reducing exposure to stranded assets, while increasing exposure to green solutions providers.
Companies can be differentiated based on their ability to capitalize (or not) on opportunities in a low-carbon economy. Those distinctions may provide investors with a road map for building resilient carbon-transition portfolios. Companies with the greatest potential to benefit from the growth of low-carbon products and services are the ones positioned as “solutions” and those able to transition from high-risk categories toward solutions.
We evaluated investment instruments on the features that matter most to different types of investors looking to invest in climate sustainability. The following are climate-themed investment funds.
Instruments to Invest in Climate Impact
| Provider | wdt_ID | Provider | id | Fund Name | ISIN | Stock Exchange | Currency | Index Tracked / Benchmark | Geography | Impact | Learn more | 2020 Return (%) | MSCI ESG Score |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 |
1 |  |
35 | Lyxor MSCI EM Climate Change UCITS ETF |
LU2056738144 | LSE | USD | MSCI Emerging Markets Climate Change Net Total Return Index | Broad Emerging Markets | Climate Change Mitigation | More details | n/a | AA |
 |
2 |  |
221 | Amundi Index MSCI Europe Climate Change |
LU2130768844 | Euronext | EUR | 100% MSCI EUROPE CLIMATE CHANGE | Broad Europe | Climate Change Mitigation | More details | n/a | AA |
 |
5 |  |
418 | ÖkoWorld Klima |
LU0301152442 | EUR | MSCI World NR USD | Broad Global | Climate Change Mitigation | More details | 54.29 | A | |
| |
6 | |
222 | AMUNDI MSCI EUROPE CLIMATE PARIS ALIGNED PAB UCITS ETF DR |
LU2182388319 | Euronext | EUR | 100% MSCI EUROPE CLIMATE CHANGE PARIS ALIGNED SELECT | Broad Developed Europe | Climate Change Mitigation | More details | n/a | AA |
| |
7 | |
223 | AMUNDI EURO ISTOXX CLIMATE PARIS ALIGNED PAB UCITS ETF |
LU2182388582 | Euronext | EUR | 100% EURO ISTOXX AMBITION CLIMAT PAB INDEX | Broad Europe | Climate Change Mitigation | More details | n/a | AA |
 |
8 | |
iShares Global Clean Energy UCITS ETF |
IE00B1XNHC34 | USD | S&P Global Clean Energy Index | Broad Global | Climate Change | More details | 134.75 | A | ||
| |
9 | |
Lyxor New Energy (DR) UCITS ETF |
FR0010524777 | LSE | EUR | World Alternative Energy Total Return Index | Broad Global | Climate Change | More details | 56.09 | AA | |
 |
10 | |
L&G Clean Energy UCITS ETF |
IE00BK5BCH80 | USD | Solactive Clean Energy Index NTR | Broad Global | Climate Change Mitigation | More details | n/a | A | ||
 |
11 | |
Invesco Solar ETF |
US46138G7060 | NYSE | USD | Broad Global | Climate Change Mitigation | More details | 316.96 | BBB | ||
| |
12 | |
iShares MSCI Global Impact ETF | US46435G5320 | NASDAQ | USD | MSCI ACWI Sustainable Impact Index | Broad Global | Climate Change Mitigation | More details | 44.67 | A |
