The Singapore Exchange (SGX) and BlackRock have announced a collaboration with the introduction of the iShares MSCI Asia ex-Japan Climate Action ETF, aimed at helping investors achieve their transition goals to a low-carbon economy.
This ETF tracks the MSCI AC Asia ex Japan Climate Action Index, part of the MSCI Climate Action Indexes series that launched in late 2022.
These indices promote a selection of the best companies in each GICS sector based on the company’s carbon intensity and its climate commitments, including science-based objectives, green income and climate risk management.
At the time of its launch, this ETF became the largest equity exchange-traded fund launched in Singapore, with assets under management (AUM) worth $426 million.
The iShares MSCI Asia ex-Japan Climate Action ETF gives investors access to leading companies in Asia (excluding Japan) that have committed to reducing their carbon emissions.
The fund is managed by BlackRock, the world’s largest asset manager, and is backed by Prudential, one of the largest asset owners in Asia and a member of the Net Zero Asset Owners Alliance.
The Asia region is experiencing an acceleration in the transition towards a more sustainable, low-carbon economy. This transformation ranges from the adoption of renewable energies to investment in sustainable infrastructure and technologies.
Singapore has cemented its position as a sustainable financial hub, attracting investment from those seeking to align their financial activities with climate considerations. Instruments such as the iShares MSCI Asia ex-Japan Climate Action ETF play a key role in directing funds towards companies and projects committed to the climate transition.
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Michael Syn, Senior Managing Director and Head of Equities at SGX Group, highlighted the importance of this initiative in the fight against climate change and mobilizing capital to address this challenge.
In addition, Peter Loehnert, head of APAC for iShares and Index Investments at BlackRock, highlighted the role of Asia-Pacific as a key region for investment in the energy transition and highlighted the importance of ETFs as vehicles to align portfolios with objectives of low carbon emissions.
Gillian Tan, Deputy CEO and Chief Sustainability Officer of the Monetary Authority of Singapore, praised the successful launch of the ETF as part of Singapore’s innovative solutions to support the transition and decarbonization in Asia.
This collaboration between SGX and BlackRock represents an important step in both entities’ commitment to advance sustainable investing and promote the fight against climate change in the Asian region and beyond.
Collaborator at ReporteAsia.