Invesco has launched a sustainable equity fund investing in European companies aiming to decarbonise faster than the MSCI EMU Index.
The Invesco Sustainable Eurozone Equity Fund, which is classified as Article 8 under SFDR, is launching in partnership with UBS Global Wealth Management and will be managed by Invesco equity fund managers Oliver Collin and Steve Smith.
Invesco will measure the reduction in the combined scope 1, 2 and 3 emissions (as measured in tonnes of Co2) of the portfolio and use the same methodology to compare these results to the weighted average emission reduction of the index.
Stephanie Butcher (pictured), senior managing director and co–head of investments at Invesco, said: “Strategies that only allow investments in environmental perfection today risk starving capital from companies that can be instrumental in reducing carbon globally.
“The energy transition requires capex, and finding and incentivising companies with the financial ability to fund that transition will unlock the greatest environmental and economic value.
“This new strategy relies on engaging with the large emitters, not excluding them, and through traditional financial analysis will seek to model the materiality and ability for change.”