Low-carbon strategies are common in equity and fixed income investing, using corporate emissions to weight or select securities. Commodities present a greater challenge, however, because they have multiple producers, various processes and delivery methods, to name a few. Incorporating environmental considerations into a commodity fund requires a different approach.
Our Invesco Bloomberg Commodity Carbon Tilted UCITS ETF tracks a novel index that tilts weightings towards those commodities with lower greenhouse gas (GHG) emissions in their production process, relative to other commodities within their sector, whilst reducing exposure to those with higher GHG emissions.