Part 1: Introducing the iClima Global Decarbonisation Enablers UCITS ETF
Part 2: The Danger of Climate Change
Part 3: Global Tailwinds: Raising Awareness of Climate Change
iClima Global Decarbonisation Enablers UCITS ETF
Introducing our climate change ETF.
Climate change is the
greatest challenge we face this century. Increasing emissions since pre-industrial times have led to increasing
rises in global temperatures. Left
unchecked, this rise in temperatures will lead to dangerous disruptions to our
global ecosystems. With the 2015 Paris Agreement,
world leaders agreed a global strategy to reach net-zero emissions by 2050 in
order to limit the rise in global temperatures to 1.5°C, and to direct financial flows to emission-reducing solutions. However, the world is off
track. To get back on track and meet
these targets, more drastic cuts to emissions must be made and global
regulation is ramping up to meet this challenge. Consumer behaviour is also shifting to more
sustainable solutions as individuals become more conscious of the part they
play in the solution. In order to meet the agreed targets, large amounts of investment are necessary into
new technologies and companies that will reduce and avoid carbon emissions.
Companies offering solutions to reduce global emissions will
benefit in the near, medium and long term.
A broad range of these companies are represented in the iClima Global Decarbonisation Enablers ETF (ticker:CLMA).
“green” ETF’s employing various ESG scores with questionable climate impact,
which are therefore often vulnerable to greenwashing, our climate change ETF focuses on companies
with products and services that directly enable “CO2e Avoidance”. This refers to emission reductions from
products or services that provide the same or similar function as existing
products but with significantly less emissions, or enables emission reductions
of a third party.
Furthermore, the climate change ETF quantifies this CO2e mitigation impact of
the companies in its index, and across the index as a whole.
iClima Earth Ltd,
the company that has created the CLMA index, performs a rigorous screening and
vetting process to select its Climate Champion companies included in the index.
It then uses a bespoke methodology to calculate the carbon avoidance of
each company and of the index as a whole.
- Net-zero and Paris
Agreement-aligned regulatory changes in key markets, such as the EU and
the USA as well as China (that committed to net zero by 2060),
- Consumer preference
trends, including plant-based diets, telepresence, ride sharing and
- Balanced exposure to a
comprehensive list of climate change solutions. It is the only ETF that
provides comprehensive exposure to the five relevant sectors - not only
renewable energy and electric vehicles, but also enabling solutions,
sustainable products, and water & waste.
- Exposure to high growth
solutions. Exciting high growth spaces like fuel cells and the new
hydrogen economy, as well as Vehicle to Grid (V2G) and distributed generation
are well represented in CLMA.
- A data-based approach
to company selection, to fight ‘greenwashing’.
Investing in the CLMA index provides a broad range of
diversification across five sectors;
& Waste Improvements
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Capital at risk.
To learn more about our climate change ETF, please visit our fund page.