Raw: [
Global asset manager Invesco announced the launch of the Invesco MSCI North America Climate ETF (KLMN), […]]
Invesco Launches New Climate ETF with Record-Breaking $2.4 Billion Investment – ESG Today
ESG Investing, sustainable finance & business sustainability news
ESG investing news, analysis, research and information
Top Stories ESG News
Companies
Government
Investors
Regulators
Sustainable Finance
ESG Solutions ESG Tools, Services
Companies Companies
Investors Investors
ESG Disclosure ESG Reporting
Analysis
Regulators
Reports, Studies
Resources
Events
About About us
Our Team
Advertise With Us
Investors/ New funds & products
Invesco Launches New Climate ETF with Record-Breaking $2.4 Billion Investment
Mark Segal
December 12, 2024
Global asset manager Invesco announced the launch of the Invesco MSCI North America Climate ETF (KLMN), a new exchange traded fund aimed at helping investors to reduce exposure to greenhouse gas emissions and gain exposure to companies with science-based emissions reduction targets.
The new ETF is being launched with a $2.4 billion investment by Finnish pension insurer, Varma, breaking a record for funding for any ETF launch globally. The announcement follows the launch earlier this year of the Invesco MSCI Global Climate 500 ETF (KLMT), with a $1.6 billion investment by Varma.
Timo Sallinen, Varma’s Head of Listed Securities, said:
“I am grateful to work with MSCI, a leading global index provider, as well as Invesco, one of the world’s largest asset managers, to break new ground on the launch of KLMN. Our record-breaking $2.4 billion investment in the North American tilt of KLMN aligns with our investment in the global KLMT ETF, which launched earlier this year, to provide us with a flexible way to allocate to our precise geographical and responsible investing needs.”
The new ETF, now trading on the NYSE, seeks to track the MSCI Global Climate 500 North America Selection Index. According to MSCI, the index weights selected constituents with an aim to include companies that meet certain environmental and climate criteria relative to their peers. The index aims to reduce weighted average greenhouse gas emissions relative to Enterprise value including cash (EVIC) by 7% and on relative to sales by 10% on an annualized basis, and to increase the weight in companies with Science Based Targets initiative (SBTi)-approved emissions reduction targets by 20%.
MSCI designed the index with input from Varma to align with Varma’s investment parameters.
Christine Berg, Head of Americas Index at MSCI, said:
“We are pleased to collaborate with both Varma and Invesco to deliver an index for this ETF. The launch truly demonstrates how custom indexes can be used to support the unique views of large institutional investors.”
According to Invesco, the new launch comes as the thematic ETF category continues to see domestic and international growth, with U.S.-listed thematic ETFs now exceeding $439 billion, according to Bloomberg data. Invesco added that themes such as greenhouse gas and carbon emissions reductions can be useful to investors looking to express large positions through a flexible and cost-effective allocation.
Brian Hartigan, Global Head of ETFs & Index Investments at Invesco, said:
“We are excited to collaborate once again with MSCI and Varma on a newly developed index and ETF that will allow Varma to easily execute a large allocation that aligns precisely with their investment views. Invesco is in a rare position to service global, institutional clients who want to leverage the liquidity and efficiency of ETFs to target important allocations in their investment portfolios.”
Mark founded ESG Today following a 20 year career in investment management and research. Prior to founding ESG Today, Mark worked at Delaney Capital Management (DCM) in Toronto, Canada, most recently as the firm’s head of U.S. equities. While at DCM, Mark was part of the firm’s ESG team, responsible for evaluating and tracking the sustainability factors impacting portfolio companies, and assessing the suitability of companies for portfolio inclusion. Mark also spent several years in the sell-side research industry, covering the technology and services sectors. Mark holds an MBA from Columbia University in New York, a BBA from the Schulich School of Business at York University in Toronto, and is a CFA charterholder.
Related Posts
Investors /
DWS Raises $340 Million for Sustainable Infrastructure Fund
New funds & products /
BNP Paribas AM Launches €750 Million Low Carbon Transition Infrastructure Fund
Investors /
85% of Investors Say Greenwashing is a Growing Problem: EY Survey
‹ AECOM Launches Energy Transition Infrastructure Team
ESG Today Newsletter – Subscribe
Subscribe to the ESG Today NewsletterJoin our mailing list for the latest breaking ESG investment news!
LevelC-LevelSVP / EVPDirector / VPManager / SupervisorMid or Entry LevelFreelance / ContractStudent / InternRetiredOther
FunctionAccounting & FinanceBusiness Development & SalesCustomer SupportFacilitiesHR & TalentInvestingLegalMarketing & CommunicationsOperationsR & DProcurement & ContractingSupply Chain & DistributionSustainabilityStrategyTechnologyOther
SUBSCRIBE!
You have Successfully Subscribed!
Sustainable Finance
Switzerland to Require Companies to Disclose 2050-Aligned Net Zero Roadmaps
Goldman Sachs Exits Net Zero Banking Alliance
European Commission Publishes EU Taxonomy FAQ to Help Investors Implement Sustainability Classification System
Thailand Issues Inaugural $865 Million Sustainability-Linked Bond
Government
California to Give Companies an Extra Year Before Fully Enforcing New Climate Reporting Rules
Hong Kong to Require IFRS-Aligned Sustainability Reporting Starting in 2025
Switzerland to Require Companies to Disclose 2050-Aligned Net Zero Roadmaps
EU Lawmakers Reject Move to Ease Law Banning Deforestation-Linked Products
Categories
Select Category
Companies
Energy Transition
Environment
ESG Reporting
ESG Tools, Services
Executive Moves
Governance
Government
Guest Posts
Investors
M&A
New funds & products
Platforms & Markets
Private Equity & Venture Capital
Professional bodies
Regulators
Reports, Studies
Social
Social & Governance
Sustainable Finance
Back to Top
Home
About us
Disclosure, cookies & privacy policy
© ESG Today 2024
Don’t miss the top ESG stories!Join the ESG Today daily newsletter and get all the top ESG stories, like this one.
Subscribe now below!
LevelC-LevelSVP / EVPDirector / VPManager / SupervisorMid or Entry LevelFreelance / ContractStudent / InternRetiredOther
FunctionAccounting & FinanceBusiness Development & SalesCustomer SupportFacilitiesHR & TalentInvestingLegalMarketing & CommunicationsOperationsProcurement & ContractingR & DStrategySupply Chain & DistributionSustainabilityTechnologyOther
SUBSCRIBE!
You have Successfully Subscribed!
Never miss the latest breaking ESG investment news. Get ESG Today’s newsletter today!
Subscribe Now
c