DWS Launches Climate ETF Despite Allegations of Greenwashing

DWS Group has launched an exchange-traded fund that tracks companies taking steps to transition to net-zero carbon emissions, even as the asset manager grapples with allegations that it inflated its own ESG credentials.

The Xtrackers Net Zero Pathway Paris Aligned US Equity ETF (ticker: USNZ) will track a Solactive index which aims to follow recommendations set by the Institutional Investors Group on Climate Change and its Net Zero Investment Framework. Companies that included by the index provider are weighed based on their greenhouse gas emissions reduction targets, green revenue and other criteria, according to a prospectus.

The ETF debuts ...