iShares Paris-Aligned Climate MSCI World ETF (PABD)

Overview

The described company focuses on investing in large- and mid-cap developed market equities, with a clear emphasis on excluding the U.S. from its portfolio. Its operational strategy is firmly rooted in the principles of the Paris Agreement, aiming to foster a transition towards a low-carbon economy. The company meticulously selects and weights its investments to ensure that its portfolio is not only compatible with decarbonization trajectories but also minimizes exposure to climate-related financial risks. This includes both transition risks, which pertain to the economy's shift towards more sustainable practices, and physical risks associated with climate change impacts. Additionally, the company seeks to enhance its portfolio by increasing investments in entities that are well-positioned to thrive amid the global shift towards sustainability. It operates with a commitment to invest at least 90% of its assets in the securities that make up its index, ensuring a high degree of adherence to its investment philosophy and objectives.

Products and Services

• Equity Investment in Developed Markets—Excluding U.S.

  This service focuses on investing in equities within large and mid-sized companies located in developed markets outside of the United States. The selection process is rigorous, prioritizing companies that align with a sustainable and low-carbon future. This service appeals to investors looking to diversify their portfolios internationally while adhering to responsible investment principles.

• Portfolio Alignment with Paris Agreement Objectives

  The company ensures that its investment portfolio is in sync with the objectives of the Paris Agreement. This involves a strategic focus on decarbonization, including the reduction of greenhouse gas emissions and adherence to a trajectory that aligns financial practices with global climate targets. This product is particularly attractive to environmentally conscious investors who wish to contribute to a global effort against climate change through their investment choices.

• Risk Management Against Climate-Related Financial Risks

  Understanding the financial risks associated with climate change is crucial. The company offers a product that focuses on minimizing exposure to these risks, which include both the transition risks related to the shift towards a green economy and the physical risks from climate impacts. This service ensures investor portfolios are resilient against potential financial downturns caused by climate-related vulnerabilities.

• Investment in Companies Favorably Positioned for Low-Carbon Transition

  This service targets investment in companies that are not just surviving but thriving in the transition to a low-carbon economy. By increasing exposure to these forward-looking firms, the company supports businesses that contribute to sustainable development and offers investors the opportunity to be part of the global solution to climate change while potentially reaping financial benefits.