Two of the biggest trends in investing are the global reaction to climate change, and the continued rise of the emerging markets consumer. Are these two trends in conflict? Or can Emerging Markets be a driver of global decarbonization?

In the upcoming webcast, Emerging Markets, ESG and Climate Change: One Simple Solution, Michael Lewis, Head of Research ESG, DWS; Komson Silapachai, Partner, Research and Portfolio Strategy, Sage Advisory; Jennifer Nerlich, Vice President Strategic Initiatives, Solactive; Amanda Rebello, Head of Passive Sales, US, DWS; will get beyond the headlines and into the nitty-gritty of how emerging companies focused on carbon reduction may be at the sweet spot of global trends.

Specifically, the Xtrackers Emerging Markets Carbon Reduction and Climate Improvers ETF (EMCR), which tracks the Solactive ISS Emerging Markets Carbon Reduction & Climate Improvers Index NTR, can help investors access the performance of emerging markets large- and mid-cap securities, including only companies operating in accordance with market standards on environmental, social and governance controversy screens.

The underlying index is also weighted in such a manner seeking to align its constituent companies’ greenhouse gas emissions with the long-term global warming target of the Paris Climate Agreement, according to the fund prospectus.

The fund can help bring a positive impact. According to DWS, fund holdings generated
135% more renewable energies than the MSCI Emerging Markets Index. Boards in fund holdings were 1.2% more diversified than the EM benchmark as well.

EMCR limits its exposure to controversial activities. For example, fund holdings had
0% exposure to the tobacco industry, 0% exposure to controversial weapons, and 0% exposure
to significant coal producers/processors.

The ETF also aims to combat the adverse effects of climate change. Fund holdings produced 55% less carbon emissions than MSCI EM Index, and holdings produced 323 less tons of carbon dioxide compared to the referenced benchmark.

Financial advisors who are interested in learning more about ESG investments can register for the Friday, October 15 webcast here.