CGS-CIMB Securities has launched an exchange-traded fund that invests in Asia-Pacific’s most carbon-efficient companies, giving investors a way to tap the region’s rapid growth while rewarding enterprises that have done more to reduce carbon emissions.
According to Bloomberg data, the CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF has assets under management of S$150 million (US$103.7 million) at launch, making it the largest equity ETF by AUM on listing in Singapore.
It is also the first ETF listed on the Singapore Exchange to track the newly created FTSE Asia Pacific Low Carbon Select Index, which comprises companies with the lowest carbon intensities relative to industry peers.
FTSE’s inclusion criteria for its low-carbon index differs from many other green indices as it takes into consideration measures adopted by companies that will likely lead to further reductions in carbon intensity, using data from organizations such as the Transition Pathways Initiative. As of September 19 2022, there are 214 companies represented by the index.
CGS-CIMB is the investment adviser to CSOP Asset Management, the manager of the ETF. CGS-CIMB is a joint venture between China Galaxy International Financial Holdings, a wholly owned subsidiary of China Galaxy Securities, and CIMB Group.