• ESG Focus with Low Tracking Error: New ETFs aim for at least a 10% improvement in both ESG rating and carbon intensity, while maintaining minimal deviation from their benchmarks.
• Strategic Access to Core Equities: Funds offer cost-efficient, Article 8-compliant exposure to S&P 500 and global equities, tailored for sustainable long-term allocations.
• Exclusions & Compliance: Strict screens applied, excluding controversial industries and violators of ESG or UN Global Compact principles.

Franklin Templeton has expanded its suite of sustainable investment products with the launch of two new Article 8 UCITS ETFs: the Franklin S&P 500 Screened UCITS ETF and the Franklin S&P World Screened UCITS ETF. These funds offer institutional investors exposure to core U.S. and global equities, while enhancing ESG performance and reducing carbon footprint.

“These new ETFs offer a cost-efficient and transparent way to access core equity exposures with enhanced ESG profiles and reduced carbon footprint, keeping a tight tracking to traditional core indices,” said Caroline Baron, Head of ETF Distribution, EMEA.

The ETFs track the S&P 500 Guarded Index and S&P Guarded World Index, both developed in partnership with S&P Dow Jones Indices. These indices apply strategic weighting to improve ESG scores and cut carbon emissions—targeting at least a 10% improvement in both metrics versus their parent benchmarks.

“These indices achieve two objectives, which include an enhanced ESG and carbon emission profile while maintaining minimal performance deviation from the parent indices,” said Rafaelle Lennox, Head of UCITS ETF Product Strategy. “This is unique in the market and supports our clients’ evolving needs.”

Key exclusions apply: companies involved in thermal coal, tobacco, controversial weapons, military arms, or those cited in serious ESG or UN Global Compact violations are screened out. This ensures investors align with sustainable standards without sacrificing core index exposure.

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Available in 13 countries across Europe and listed on major exchanges including XETRA, LSE, Euronext Paris, and Borsa Italiana, the ETFs are priced competitively at 0.09% (S&P 500) and 0.14% (World), making them attractive for institutional portfolios seeking ESG integration with performance efficiency.

“These ETFs could be used with traditional core solutions to complement them, for example,” added Baron.

The funds are managed by Dina Ting, Head of Global Index Portfolio Management, and Lorenzo Crosato, ETF Portfolio Manager—bringing over three decades of combined expertise to the strategy.

“We are pleased to have collaborated with S&P in the creation of this unique index range,” said Lennox. “It supports our clients’ growing demand for sustainability without compromising performance.”

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