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Franklin Templeton
Franklin Templeton has launched its new Franklin MSCI Emerging Markets Paris Aligned Climate UCITS Exchange-Traded Fund which sits within its Franklin Templeton ETF range. 

This sustainable ETF, which is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation, is the fourth Paris Aligned Climate ETF in the firm’s range, joining its China, Europe and US funds. 

The new ETF will track the MSCI Emerging Markets Climate Paris Aligned Index, an EU Climate Benchmark Index. It will include large and mid-cap stocks across 24 emerging markets that are transitioning to a low carbon economy, the firm said in a statement. The ETF is designed to support investors seeking to reduce exposure to physical climate risks whilst pursuing opportunities arising from the Paris Climate Agreement decarbonisation goals.

The Franklin MSCI Emerging Markets Paris Aligned Climate UCITS ETF was listed on the Deutsche Börse Xetra on 10 March and Borsa Italiana and London Stock Exchange on 14 March. The fund will also be registered in Austria, Denmark, Finland, France, Germany, Ireland, Italy, Spain, Sweden and the UK, the firm continued.

Caroline Baron, head of ETF distribution, EMEA, Franklin Templeton, said: “Providing access to distinct opportunities in emerging markets at a competitive fee, this ETF reduces climate risk exposure by investing in companies providing solutions to mitigate climate change as well as those improving their resilience to its consequences, giving them a long-term competitive advantage.”

“With global temperatures on the rise and massive investment needed to reduce carbon emissions amid today’s rising energy needs, emerging markets play an important role in achieving net zero. We believe this new ETF can be a core sustainable investment solution for those looking to tap into this exciting growth story,” she continued.  

This ETF will be managed by Dina Ting, head of global index portfolio management, and Lorenzo Crosato, ETF portfolio manager, at Franklin Templeton. 

Ting added: “The EU Action Plan has three main objectives to drive the EU transition to a green economy, namely – reorienting capital flows towards sustainable investment, mainstreaming sustainability into risk management and fostering transparency and long-termism. This will require significant investment in infrastructure, energy and technology. Our Article 8 ETF enables European investors to take part in this significant opportunity and further deepens Franklin Templeton’s wide range of sustainable products.”