iShares adjusts bond ETF for climate risks

Published 01/17/2025, 04:02 AM

DUBLIN - iShares III plc, a prominent ETF provider, has announced upcoming changes to the FTSE Advanced Climate Risk-Adjusted European Monetary Union Government Bond Index, which serves as the benchmark for the iShares € Govt Bond Climate UCITS ETF. The modifications, set to take effect around January 31, 2025, involve the application of new constraints to the index constituents, reflecting an enhanced focus on climate risks.

The company has indicated that these adjustments are part of its ongoing efforts to align its investment offerings with evolving market standards and investor concerns regarding climate change. In response to the upcoming changes, iShares will release an updated version of the fund's prospectus to provide full disclosure to investors.

The iShares € Govt Bond Climate UCITS ETF, which trades under the ISINs IE00BLDGH553, IE00BLDGH447, and IE000M9FJ295, is designed to offer exposure to Eurozone government bonds while incorporating considerations for climate risks. This approach aligns with a growing trend in the investment community where environmental factors are increasingly influencing asset allocation decisions.

Investors seeking additional information or clarification on the changes have been directed to reach out to iShares via provided contact details for the United Kingdom (TADAWUL:4280), Germany, and Switzerland. The full shareholder letter will soon be available for inspection on the Financial Conduct Authority's National Storage Mechanism and for download from the iShares website.

This move by iShares reflects a broader industry shift towards sustainable investing, where environmental, social, and governance (ESG) criteria are becoming central to investment strategies. As the market for climate-aware financial products grows, iShares' update to their ETF is indicative of the company's commitment to staying at the forefront of this trend.

The information regarding these changes is based on a press release statement issued by iShares III plc and has been disseminated by RNS, the news service of the London Stock Exchange (LON:LSEG), which is authorized by the Financial Conduct Authority in the United Kingdom as a Primary Information Provider.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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