Fidelity International Launches Paris-Aligned Benchmark Active Equity ETF

Fidelity International has launched the Fidelity Global Equity Research Enhanced PAB UCITS ETF, its first equity fund in its Research Enhanced range to follow the Paris-Aligned Benchmark framework. The Article 9-classified fund targets income and capital growth while maintaining a minimum 50% reduction in greenhouse gas emissions intensity compared to the market index.

Classified under the EU's Sustainable Finance Disclosure Regulation as Article 9, the new ETF references the Solactive ISS ESG Screened Paris Aligned Developed Markets USD Index NTR as its benchmark. Under EU rules, Paris-Aligned Benchmark indices must achieve a minimum initial greenhouse gas emissions intensity reduction of at least 50% versus the standard market index, and must deliver annual GHG emissions intensity reductions of at least 7%. The fund uses a combination of quantitative and fundamental research to select and weight securities, while also tilting toward higher-ESG-rated issuers.

The launch reflects growing investor demand for climate-aligned investment products that combine both sustainability screens and active management insights. Fidelity's Research Enhanced ETF range taps the firm's global fundamental research capabilities and forward-looking sustainability assessments, offering clients what the firm describes as market beta and alpha at a competitive price. Chief Sustainability Officer Jenn-Hui Tan noted increasing client demand for greater options to express sustainability preferences alongside financial goals.

The fund adds a climate-specific option to Fidelity's growing active ETF suite, extending choices across asset class, geography and sustainability preference. As European and Asian institutional investors face increasing pressure to align portfolios with Paris Agreement goals, the PAB framework provides a regulatory-recognised methodology for portfolio alignment. For Indian asset managers and funds seeking to engage with SFDR-aligned products, this launch illustrates the evolving product architecture that international investors are increasingly demanding.

Key figure — Minimum 50% GHG emissions intensity reduction versus market index