UBS Asset Management (UBS AM) has introduced the S&P 500 Climate Transition ESG UCITS ETF, tailored for investors seeking U.S. large-cap exposure with net-zero alignment and improved ESG standards. This new fund, listed on major European exchanges like The London Stock Exchange and SIX Swiss Exchange, is the inaugural UCITS ETF to follow a climate transition index based on the S&P 500 universe. It falls under Article 9 of the EU’s SFDR regulation and adheres to the Climate Transition Benchmark label, ensuring alignment with a 1.5°C warming trajectory and a 30% reduction in GHG emissions relative to the market index. Additionally, it excludes activities like controversial weapons. The index selection process involves screening for UN Global Compact violations and revenue thresholds in certain sectors, followed by carbon intensity reduction and decarbonisation trajectories. With 369 constituents, the index aims to minimise tracking error by controlling sector and industry exposure.
Source– UBS Launches New Net Zero-Aligned S&P 500-Based ETF – ESG Today
About the Authors
Associate Director, Investment Banking
Prachurjya has over 16 years of experience in investment banking with Acuity Knowledge Partners. At Acuity, he has led sector and product-specialist pilot teams across Capital Markets, ESG, Debt Advisory, Loan Syndications, Metals & Mining and Real Estate. He has been actively involved in setting up and on-boarding new ESG Advisory, ESG DCM and Sustainable Finance teams for various bulge bracket investment banks. Within DCM and Rating Advisory, he has been instrumental in helping the clients achieve over 30% in annual savings on both regular and adhoc tasks through standardization of the outputs and deployment of our proprietary BEAT tools.
Delivery Manager, Investment Banking
Puja has 7 years of extensive experience in ESG, Climate Change & Sustainability and she is supervising the ESG team at Acuity. She also has diverse experience in conducting ESIA, EHS compliance audits, ESG Risks and Controls, EHS & ESG Due Diligence assessments. Prior to joining Acuity, she was working with companies like KPMG Global Services, EY India and ERM India. She has expertise in provisioning extensive research requirements for clients through preparation of Peer Benchmarking, Target Compilation, Sustainability report, Sustainable Finance Updates and Sectoral ESG Thematic Detailing Engagement.
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