Smart Pension, one of the UK’s leading workplace pension providers, announces its investment in J.P. Morgan’s Carbon Transition Global Equity (CTB) UCITS ETF (ticker: JPCT). The ETF focuses on driving the shift to a lower-carbon economy and is part of a wider initiative to make Smart Pension’s default growth fund net zero by 2040. This continues to put Smart Pension at the forefront of the industry from a sustainability perspective.
The J.P. Morgan fund is a sustainable ETF classified as Article 9 by the Sustainable Finance Disclosure Regulation, a technical standard introduced last year by the European Commission to show where funds have sustainable objectives. The fund offers Smart Pension core exposure to global equities with a low tracking error, compared to the MSCI World Index. The ETF is aligned with the European Union’s Climate Transition Benchmark framework, meaning it will be at least 30% less carbon intensive than the market average and reduce its own carbon footprint by at least 7% per year. This means the fund will make a real difference to the people and the planet around us.
The news comes after Smart Pension announced it had become the first UK pension provider to offer customers a range of growth funds that are all fully sustainable, including the Smart Pension default fund, in January 2023.
Smart Pension has made considerable progress in incorporating investments with a strong sustainability focus into its portfolio, and intends to continue doing so. The company is a member of leading global sustainability initiatives and has announced that its default growth fund will be net zero by 2040.
Paul Bucksey, Chief Investment Officer at Smart Pension, commented: “We are focused on achieving great outcomes for our members. We want to help them secure long-term financial growth and a safer, healthier world in which they can retire. We’re delighted to be partnering with J.P. Morgan Asset Management, a leader in the transition to a low carbon world. We chose J.P. Morgan’s Carbon Transition Global Equity (CTB) UCITS ETF because it is committed to companies carrying out simple changes to make a big difference: lowering their carbon emissions, reducing harmful waste and improving their sustainability processes. Now more than ever before, investing in a lower carbon economy is crucial for our future.”
Annabel Tonry, UK Defined Contribution Client Adviser at J.P. Morgan Asset Management, commented: “We are thrilled to have had the opportunity to partner with Smart Pension, whose unwavering focus on sustainability has made them a leader in this space. Our Carbon Transition Global Equity ETF focuses on investing in companies that are innovating for the future whilst also achieving a lower carbon footprint. We are delighted to be part of a fully sustainable default that aligns with DC members’ sustainable goals.”
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