Analysis

Key stats

About iShares Paris-Aligned Climate MSCI World ex USA ETF

PABD employs a climate-conscious strategy, focusing on large- and mid-cap stocks in developed markets excluding the US. The fund selects companies positioned favorably for the transition to a low-carbon economy. It begins by excluding stocks from the Parent Index, the MSCI ex USA Index, involved in civilian firearms, controversial weapons, nuclear weapons, oil and gas, oil sands, power generation, thermal coal mining, and tobacco. Remaining companies are further screened based on categorical and threshold-based criteria across five ESG impact categories: environment, human rights and communities, labor rights and supply chain, customers, and governance. Additional constraints include lowering carbon intensity, minimizing physical risk exposure, and boosting green revenue. The fund prioritizes securities based on their potential to decrease greenhouse gas intensity. An optimizer is used to keep sector exposure within +/- 5% of the parent index, excluding the energy sector. The fund may lend up to one-third of its securities. The index is rebalanced semi-annually.