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Introducing the iClima Global Decarbonisation Enablers UCITS ETF | CLMA

 

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[1]. 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[2]. 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). 

Unlike other “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[3]”. 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[4]. 

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.

CLMA benefits from:

  • 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 others. 
  • 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;

  • Green Energy
  • Green Transportation
  • Water & Waste Improvements
  • Enabling Solutions
  • Sustainable Products. 

 

Capital at risk.

To learn more about our climate change ETF, please visit our fund page.

 

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