Manulife Investment Management has launched two new climate-focused investment funds.

The Manulife Climate Action Fund and Manulife Climate Action Class seek long-term capital growth by investing in organizations that are making progress on mitigating climate change.

In a release, Manulife said the climate action fund “uses the Paris Agreement and science-based targets as a framework for its stock selection process by investing in companies with clear plans to reduce their carbon footprint.”

Both funds invest in companies that have strong earnings but also provide transparent reporting on sustainability.

“This provides the opportunity for investors to invest in companies taking serious actions towards climate change without sacrificing potential returns,” said Margaret Childe, head of ESG Canada at Manulife Investment Management, in the release.

The new funds will be offered alongside the Manulife Investment Management Global Climate Pooled Fund, which launched in February.