Today, London Stock Exchange markets were opened by Northern Trust Asset Management to celebrate the launch of two climate focused exchange-traded funds (ETFs): the FlexShares® Developed Markets Low Volatility Climate ESG UCITS ETF (QVFD) and the FlexShares® Developed Market High Dividend Climate ESG UCITS ETF (QDFD).

The Funds represent the first FlexShares’ ETFs available in Europe, with additional funds planned to launch in the coming months.

FlexShares partnered with index provider STOXX® to develop benchmarks for both QVFD and QDFD. The funds underlying indices, the iSTOXX® Northern Trust Developed Markets Low Volatility Climate ESG Index and the iSTOXX® Northern Trust Developed Markets High Dividend Climate ESG Index, utilise Northern Trust Asset Management’s proprietary Quality factor in an effort to identify companies that exhibit strength in profitability, management expertise and cash flow while maximizing the portfolio’s ESG exposure and reducing its carbon footprint.

Marie Dzanis, EVP, Head of Asset Management, EMEA Northern Trust Asset Management, said:

“We’re pleased to present the first FlexShares products in Europe, which reflect Northern Trust Asset Management’s three decades of experience in managing sustainability-focused investment strategies. Actively designed with the transparency of indexing, these two ETFs are built specifically to fit within professional investors’ evolving needs to help manage portfolio volatility and target income in a low yield environment while doing so with a focus on quality.”

In February 2021, London Stock Exchange Group (LSEG) announced its commitment to net zero through the Business Ambition for 1.5°. The Group’s science-based targets to reduce emissions in alignment with the Paris Agreement have also been approved by the Science Based Targets initiative (SBTi).

LSEG commits to reducing its emissions by almost 50% by 2030 and will engage all key suppliers, to set science-based Scope 3 emissions targets by 2025. LSEG has also been a supporter of the Task Force for Climate-related Financial Disclosures (TCFD) since its launch in 2017.

As part of LSEG’s efforts to drive action on climate change, London Stock Exchange has become the first exchange to launch a dedicated Transition Bond Segment.