Invesment manager Nuveen announced the launch of a new climate transition-focused fund that will invest in climate leaders and disruptive technology solutions, as well as in high-carbon emitting companies that present opportunities for real-world emissions reduction.
According to the firm, the Nuveen Global Net Zero Transition ETF (NTZG), will utilize a strategy that aims to provide favorable long-term performance alongside reduced portfolio carbon emissions through stewardship and engagement.
Jordan Farris, Head of ETF product, Nuveen, said:
“Through our engagement process, we will seek to decarbonize the portfolio at a rate faster than that of the market to achieve net zero carbon ahead of the Paris Agreement 2050 deadline. Importantly, the fund serves as an effective voice for investors who are concerned about climate issues and want to drive change through their investments.”
Nuveen stated that its net zero stewardship approach focuses on the portfolio’s highest carbon emitters to move companies closer to achieving reductions in their emissions. Key elements of this approach include communicating with companies to establish climate strategy expectations, recommending enhancements to strategies, and monitoring progress against targets.
The new ETF seeks to outperform the MSCI All Country World Index (ACWI), with a focus on carbon emissions reductions.
Amy O’Brien, Global Head of Responsible Investing, Nuveen, said:
“Our research shows that nine out of 10 investors want to see the results of their Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More investing. Accordingly, in this strategy, we’ll practice transparent stewardship, including publishing data demonstrating the reduction of emissions, pointing specifically to the companies that are driving progress and continuing to signal our own accountability.”
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