Invesco Launches Climate-Conscious Commodity ETF to Reduce GHG Emissions

Invesco has introduced a new commodity basket ETF, the Invesco Bloomberg Commodity Carbon Tilted UCITS ETF (CMOC), listed on various stock exchanges. The ETF incorporates climate considerations by adjusting the weights of individual commodities based on their greenhouse gas (GHG) emissions throughout their production lifecycle. It aims to achieve a 20% reduction in GHG emissions compared to the standard Bloomberg Commodity index group weightings. By underweighting higher-emitting commodities and overweighting lower-emitting ones, the ETF aims to create an aggregate GHG reduction. This innovative product marks the first broad commodity ETF classified under Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), responding to the growing demand among investors for ESG products.