The path to net zero
We expect the ‘E' in the environmental, social and governance (ESG) space to evolve in the UK and beyond in 2022 as new regulations governing sustainability in the financial sector are introduced. At the same time, the switch from a carbon intensive economy will require huge public and private sector investment in innovative technology and green infrastructure. Meanwhile, any delay in the transition to net zero could exacerbate the climate crisis and pose risks to portfolios and assets.
Investment portfolios will increasingly reflect the realities of the transition to net zero. The asset allocation of our exchange traded funds (ETFs) provides investors with a range of options to match their own personal views and objectives. Some of our ESG ETFs apply net-zero targets aligned with the Paris agreement on climate change. They aim to reduce carbon intensity and provide exposure to companies investing in decarbonisation.
The UK and net zero
The UK is leading the charge against climate change and has already made huge improvements compared to many of the world's largest polluters. With an economy focused on service industries, the UK's carbon intensity has fallen over the last decade, and the government has announced various measures to accelerate the transition to net zero. According to Invesco estimates, at current trend, the UK is on target to reach net zero by 2037.
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Investment risks
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
Important information
This marketing communication contains information that is for discussion purposes only and is intended only for professional investors in the UK. Marketing materials may only be distributed in other jurisdictions in compliance with private placement rules and local regulations.
Data as at 31 December 2021 unless otherwise stated.
Any calculations and charts set out herein are indicative only, make certain assumptions and no guarantee is given that future performance or results will reflect the information herein.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
Costs may increase or decrease as result of currency and exchange rate fluctuations. Consult the legal documents for further information on costs.
For more information on our funds and the relevant risks, please refer to the share class-specific Key Investor Information Documents (available in local language), the Annual or Interim Reports, the Prospectus, and constituent documents, available from invesco.eu. A summary of investor rights is available in English from invescomanagementcompany.ie. The management company may terminate marketing arrangements.
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UCITS ETF's units / shares purchased on the secondary market cannot usually be sold directly back to UCITS ETF. Investors must buy and sell units / shares on a secondary market with the assistance of an intermediary (e.g. a stockbroker) and may incur fees for doing so. In addition, investors may pay more than the current net asset value when buying units / shares.
This document has been communicated by Invesco Investment Management Limited, Ground Floor, 2 Cumberland Place, Fenian Street, Dublin 2, Ireland.