CSOP, CGS-CIMB list ETF tracking low carbon Asia-Pacific companies on SGX

CSOP Asset Management and CGS-CIMB on Wednesday (Sep 28) launched a new exchange-traded fund (ETF) on the Singapore Exchange (SGX) tracking carbon-efficient companies in Asia-Pacific.

The ETF, called the CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF, tracks the newly created FTSE Asia Pacific Low Carbon Select Index.

This index comprises companies with the lowest carbon intensities relative to peers in their industries. As of Sep 19, it represents 214 companies, CGS-CIMB said in a press statement.

In its inclusion criteria, the index looks at measures taken by companies which lead to further reductions in carbon intensity, using data from organisations such as the Transition Pathways Initiative.

CSOP CGS-CIMB FTSE Asia Pacific Low Carbon Index ETF had assets under management (AUM) of S$150 million at launch, bringing the total global AUM of sustainability-linked ETFs listed on the Singapore bourse to more than S$1 billion, SGX said in a separate press statement.

Its main listing will be in Singapore, with possible secondary listings in other Asian stock markets in the future, CGS-CIMB added.

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The new ETF is available in both Singapore-dollar and US-dollar tranches. Offshore asset manager CSOP Asset Management is the manager of the ETF, while CGS-CIMB is the adviser.