Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF (FVEM)

Overview

The Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF is a strategically designed exchange-traded fund aimed at aligning investors' portfolios with the ambitious goals set by the Paris Climate Agreement. Specifically targeting the emerging markets, this ETF seeks to promote the transition towards a low-carbon economy by investing in a diversified portfolio of securities that have demonstrated a commitment to environmental sustainability and reduced carbon emissions. Through rigorous selection criteria and employing an MSCI-designed index methodology, the fund focuses on sectors and regions within emerging markets that are particularly susceptible to the risks and opportunities presented by climate transition. This approach not only facilitates a reduction in greenhouse gas emissions and decreases fossil fuel exposure but also opens a gateway for investors to partake in the potentially high growth economies while adhering to sustainable investment practices. The Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF represents a significant step forward in the integration of environmental considerations into the financial decisions that shape our global economy.

Products and Services

• Paris Climate Agreement-Aligned Investment Portfolio

  This product offers investors the opportunity to align their investment portfolios with the objectives of the Paris Climate Agreement. The ETF invests in large and mid-cap companies across emerging markets that are committed to transitioning towards a low-carbon economy. This ties directly into global efforts to mitigate climate change through reduced carbon emissions, fostering a sustainable investment ethos that contributes to the health of our planet.

• MSCI-Designed Index Methodology for Emerging Markets

  The ETF utilizes an index methodology created by MSCI—a leader in investment decision support tools—that emphasizes sectors and regions within emerging markets most likely to be affected by climate transition. This methodology systematically identifies opportunities and risks related to the climate transition, ensuring that investments are made in areas where they can have both a significant impact on sustainability and potential for financial growth.

• Climate Adjustment Scores and Sector Exclusions

  Integral to the fund's strategy are the climate adjustment scores and sector exclusions applied to its investment process. By evaluating potential investments based on these two metrics, the ETF promotes activities that lead to lower greenhouse gas emissions and reduced exposure to fossil fuels. This strategic focus helps investors to support companies actively engaged in sustainable practices and industries, underscoring the critical role of responsible investing in promoting environmental stewardship.