Nuveen Active ETF Provides Exposure to Global Economy's Transition to Net Zero Carbon

Rhea-AI Summary

The Nuveen Global Net Zero Transition ETF (NASDAQ: NTZG) launches, targeting investment in companies aligned with carbon reduction goals under the Paris Climate Agreement. The fund's portfolio emphasizes three categories: climate leaders, disruptive technology providers, and high-carbon emitters. Through its stewardship activities, Nuveen aims to decarbonize faster than the market and meet net zero by 2050, engaging with companies to ensure accountability and track progress. As of May 2022, Nuveen's ETF suite manages $7.9 billion across 19 funds.

Positive

• Launch of NTZG aligns with global carbon reduction trends.
• Targets companies actively reducing carbon emissions.
• Engagement strategy seeks to decarbonize faster than market.
• Nuveen's ETF suite manages $7.9 billion, indicating investor interest.

Negative

• None.

A new strategy seeks to provide favorable long-term performance and reduce portfolio carbon emissions through stewardship and engagement

NEW YORK, June 24, 2022 /PRNewswire/ -- Launching today, the Nuveen Global Net Zero Transition ETF (NASDAQ: NTZG) will express conviction in the ongoing transition of the global economy to "net zero"¹ carbon emissions. In seeking to align with the goals of the Paris Climate Agreement on avoiding dangerous climate change, the underlying holdings of the fund are comprised of stocks in the following three categories:

1. Climate leaders: Companies that have committed to carbon-reduction plans validated as Paris-aligned, as well as companies with a credible intention to reducing carbon
2. Companies providing disruptive technology that significantly supports climate mitigation
3. High-carbon emitters where reduction will represent a meaningful contribution to real-world emissions decline

About the Fund:
ETF Name and Ticker:	Nuveen Global Net Zero Transition ETF (NASDAQ: NTZG)
Portfolio Managers:	Tom Lavia, CFA – Member of Nuveen's Equities Investment Council
	Willis Tsai – Head of International Portfolio Management for Nuveen's equities team
Description:	Greg Mancini – Co-Head of Global Research for Nuveen's equities team An actively managed global equity ETF seeking to outperform the MSCI All Country World Index (ACWI) with a focus on carbon emissions reductions

"Today, a confluence of scientific conviction, societal consensus, energy security policy, and business practice is all centered on the reality that reducing harmful carbon emissions is absolutely critical to the future of the planet. These forces represent a powerful tailwind for our strategy as more investors prudently realize the urgently needed transition to net zero will inevitably create market winners and losers," said Jordan Farris, Head of ETF product, Nuveen.

"Through our engagement process, we will seek to decarbonize the portfolio at a rate faster than that of the market to achieve net zero carbon ahead of the Paris Agreement 2050 deadline. Importantly, the fund serves as an effective voice for investors who are concerned about climate issues and want to drive change through their investments," he said.

Stewardship Activities Will Set Expectations, Track and Report Progress

Net zero originated as a concept for country-level climate commitments but is now becoming a benchmark for companies that want to signal their intention to rapidly decarbonize their businesses.

Nuveen's net zero stewardship approach focuses on the portfolio's highest carbon emitters to move companies closer to meaningful reductions in their emissions. Key elements of the approach include communicating and regularly meeting with companies to establish expectations regarding climate strategy, recommending enhancements to strategies and monitoring progress against goals, and taking other action where necessary, such as voting on climate related shareholder proposals to compel additional progress on carbon reduction.

Investors Want Net Zero Carbon Investments

"Our research shows that nine out of 10 investors want to see the results of their ESG investing². Accordingly, in this strategy, we'll practice transparent stewardship, including publishing data demonstrating the reduction of emissions, pointing specifically to the companies that are driving progress and continuing to signal our own accountability," said Amy O'Brien, Global Head of Responsible Investing, Nuveen.

Investors view the transition to net zero carbon as a critical investment criterion, as shown in Nuveen's market research. According to Nuveen's Responsible Investing Survey, one in two investors (58%) would be interested in an investment strategy if it had only investments with net zero carbon emissions. A strong majority of ESG investors (85%) agree that knowing the total carbon emissions generated by their investments would help them make portfolio allocation decisions.

About Nuveen's ETF Suite 
With the launch of NTZG, Nuveen's ETF suite now includes a total of 19 funds with $7.9 billion in AUM as of 5/31/2022. 

11 out of the 14 Nuveen index-tracking ETFs offer a unique selection of securities evaluated against ESG and low-carbon criteria, the thresholds for which were developed in consultation with the Nuveen responsible investing team to specifically align with the values of Nuveen clients³. 

Media Contacts:	Sally Lyden: Sally.Lyden@Nuveen.com // 646.662.3490
	E-Soo Kim: E-Soo.Kim@Nuveen.com // 201.421.0417

About Nuveen 
Nuveen, the investment manager of TIAA, offers a comprehensive range of outcome-focused investment solutions designed to secure the long-term financial goals of institutional and individual investors. Nuveen has $1.2 trillion in assets under management as of 31 Mar 2022 and operations in 27 countries. Its investment specialists offer deep expertise across a comprehensive range of traditional and alternative investments through a wide array of vehicles and customized strategies. For more information, please visit www.nuveen.com.

Responsible investing incorporates Environmental Social Governance (ESG) factors that may affect exposure to issuers, sectors, industries, limiting the type and number of investment opportunities available, which could result in excluding investments that perform well.

This material is not intended to be a recommendation or investment advice, does not constitute a solicitation to buy, sell or hold a security or an investment strategy, and is not provided in a fiduciary capacity. The information provided does not take into account the specific objectives or circumstances of any particular investor, or suggest any specific course of action. Investment decisions should be made based on an investor's objectives and circumstances and in consultation with his or her advisors.

A word on risk

Investing involves risk; principal loss is possible. There is no guarantee the Fund's investment objectives will be achieved. This ETF seeks to generally track the investment results of an index; however the Fund may underperform, outperform or be more volatile than the referenced index. In addition, because the Index selects securities for inclusion based on environmental, social, and governance (ESG) criteria, the Fund may forgo some market opportunities available to funds that don't use these criteria. The value of equity securities may decline significantly over short or extended periods of time. Dividend-paying stocks, such as those held by the Fund, are subject to market risk, concentration or sector risk, preferred security risk, and common stock risk.

Exchange Traded Funds (ETFs) may not be marketed or advertised as an open-end investment company or mutual fund. Shares of ETFs are bought and sold at market price as opposed to net asset value. As a result, an investor may pay more than net asset value when buying and receive less than net asset value when selling. In addition, brokerage commissions will reduce returns. Fund shares are not individually redeemable directly with the Fund, but blocks of shares may be acquired from the Fund and tendered for redemption to the Fund by certain institutional investors in Creation Units.

Before investing, carefully consider fund investment objectives, risks, charges and expenses. For this and other information that should be read carefully, please request a prospectus or summary prospectus from your financial professional or Nuveen at 866.802.6398 or visit nuveen.com.

Nuveen Fund Advisors, LLC serves as the Fund's adviser and Nuveen Asset Management, LLC and Teachers Advisors, LLC, serve as the Funds' sub-advisers; both the adviser and sub-advisers are subsidiaries of Nuveen, LLC. Nuveen Securities, LLC, member FINRA and SIPC.

 

¹ The United Nations defines "net zero" as cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, for example, by oceans and forests. To avert the worst impacts of climate change, global temperature increase needs to be limited to 1.5°C (about 2.7°F) above pre-industrial levels. Keeping global warming to no more than 1.5°C, as called for in the Paris Agreement, requires reducing emissions by 45% by 2030 and to net zero by 2050. 
² According to Nuveen's 2021 Responsible Investing Survey, nine in 10 (91%) ESG investors agree that seeing the specific societal or environmental benefits of their ESG investing is essential to why they invest.  Yet, about half (53%) of these investors also say it's hard for them to see those results – and 95% say they would invest even more if it were easier. 
³ Morningstar, as of May 31, 2022

 

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SOURCE Nuveen

FAQ

What is the Nuveen Global Net Zero Transition ETF (NTZG)?

The Nuveen Global Net Zero Transition ETF (NASDAQ: NTZG) is an actively managed fund that invests in companies committed to reducing carbon emissions in alignment with the Paris Climate Agreement.

When was the Nuveen Global Net Zero Transition ETF launched?

The Nuveen Global Net Zero Transition ETF was launched on June 24, 2022.

How much does Nuveen's ETF suite manage as of May 2022?

As of May 2022, Nuveen's ETF suite manages $7.9 billion across 19 funds.

What are the main categories of companies invested in by NTZG?

NTZG invests in climate leaders, companies providing disruptive technology for climate mitigation, and high-carbon emitters where reductions are impactful.

What is Nuveen's strategy for engaging with companies in the NTZG portfolio?

Nuveen's strategy includes stewardship activities aimed at helping companies achieve meaningful reductions in carbon emissions through regular communication and monitoring.