The DWS Paris Agreement: What You Need to Know
The Paris Agreement is a landmark global treaty on climate change that was adopted by 195 countries in 2015. Its aim is to limit global temperature rise to below 2 degrees Celsius above pre-industrial levels and pursue efforts to limit it to 1.5 degrees Celsius. The treaty sets out a framework for nations to work together to mitigate the impacts of climate change and adapt to its effects.
In light of this, DWS, a global asset management company, has launched an initiative called the DWS Paris Agreement Alignment ETF. This exchange-traded fund invests in companies that are aligned with the goals of the Paris Agreement, providing investors with the opportunity to support sustainable investments.
But what exactly is the DWS Paris Agreement Alignment ETF, and how does it work?
The DWS Paris Agreement Alignment ETF is a passive index-tracking fund that invests in companies that are aligned with the goals of the Paris Agreement. It considers several factors, including carbon emissions, renewable energy, and other environmental, social, and governance (ESG) criteria to determine which companies are eligible for inclusion. The ETF tracks the Solactive Paris Aligned Select Index, which is designed to track the performance of companies that are Paris Agreement aligned.
Investors in the DWS Paris Agreement Alignment ETF can expect to see a broadly diversified portfolio of global equities that have passed the Paris Agreement screening criteria. The ETF invests in companies that are leaders within their respective industries, with a focus on renewable energy, low-carbon transportation, and sustainable agriculture, among others.
By investing in the DWS Paris Agreement Alignment ETF, investors can not only benefit from potential financial returns but also support sustainable investing and contribute to the transition to a low-carbon economy. Additionally, the ETF provides transparency as to where investors` money is being invested, allowing them to align their investments with their values.
In conclusion, DWS Paris Agreement Alignment ETF provides investors with the opportunity to support sustainable investments by investing in companies that align with the goals of the Paris Agreement. By investing in this ETF, investors can support the transition to a low-carbon economy and contribute to mitigating the impacts of climate change.