- New ESG climate change ETF iClima Global Decarbonisation Enablers UCITS ETF (ticker: CLMA) to launch on Deutsche
Boerse’s Xetra and Borsa Italiana in December
- Focus on
companies that directly enable CO2e avoidance solutions, and quantifies impact
- The 151 companies
in the iClima Global Decarbonisation Enablers Index are expected to contribute over
0.6 Gigatonnes of new and recurring potential CO2e avoidance in 2021. Global
emissions are currently at 56 Gigatonnes and by the end of the decade need to
be reduced by 7.6% p.a.
- Climate change
and the transition to a low carbon economy are part of one of the largest
megatrends of the 21st century
- Green investments
need to triple to achieve global targets, fuelled by regulatory changes such as
the 2015 Paris Agreement
- The iClima Global
Decarbonisation Enablers Index TR is up 64.5% over the last 12 months (as of
November 19th 2020)
8th December 2020, London
Impact fintech business, iClima Earth, will launch the
world’s first ESG UCITS exchange traded fund (ETF) that provides exposure to companies offering products and services that enable CO2e avoidance
solutions[1],
and quantify that impact.
The iClima Global Decarbonisation Enablers UCITSETF (ticker: CLMA) will launch via the HANetf
platform and will list on Deutsche Boerse’s Xetra and Borsa Italiana this week. CLMA will be the first ESG focused ETF issued
by HANetf. The climate change ETF recently listed on London Stock Exchange on December 8th 2020.
Gabriela Herculano, CEO of iClima Earth said “We are proud to announce the launch of
the iClima Global Decarbonisation
Enablers UCITS ETF to redefine
climate change investments. This
is the world’s first UCITS climate change ETF that provides exposure to companies offering products and
services that enable CO2e avoidance, and quantifies the impact of those
companies in meeting decarbonisation targets.
The CLMA ETF is unique as it shifts the focus
from the companies reducing their own emissions, to companies offering products
and services that directly enable CO2e avoidance solutions, shining a spotlight
on climate change innovators. iClima Earth estimates that the 151
companies in the iClima Global Decarbonisation
Enablers Index can potentially avoid over 0.6 Gigatonnes of C02e in 2021 – the planet
needs to avoid 4.26 Gigatonnes of new emissions in 2021 to reach the goal of
limiting global warming to 1.5 degrees Celsius[2].
Climate change and the transition to a low carbon economy
are part of one of the largest megatrends of the 21st century. Green investments are being fuelled by
regulatory actions such as the 2015 Paris Agreement as well as consumer
preferences such as veganism and telepresence. To meet the goals of the Paris
Agreement, investment into green investments needs to triple from current
levels.[3]
There are many ‘green’ investment products already on the
market that use complex ESG scores or focus on low-carbon companies doing less
harm. However, the best way to reduce
CO2e in the atmosphere is to find lower-emission alternatives to products and
services, thereby ‘avoiding’ emission. In order for the world to reach net-zero
by 2050 and have a chance of limiting global warming to 1.5 degrees Celsius
above pre-industrial levels, large amounts of investment are necessary into new
technologies and companies that will reduce and avoid carbon emissions. As a result, CLMA provides exposure to
these companies across five subsectors including green energy, green transportation, water and waste
improvements, decarbonisation enabling solutions and sustainable products. This includes high
growth solutions like green hydrogen & fuel cells, distributed generation
and electric vehicles.”
The
ETF has a TER of 0.65% and tracks the iClima Global Decarbonisation Enablers
Index, developed by iClima Earth. iClima Earth is a green fintech that creates
investment products targeting companies that make impactful contributions to
solving climate change.
The index was
built using a tiered approach, meaning there is no over-exposure to large cap
companies and it provides a balanced exposure to the key climate change
solutions. The iClima Global
Decarbonisation Enablers Index is up 64.5% over the last 12 months[4]. Past performance is no guarantee of future
performance.
Gabriela Herculano, CEO of iClima Earth continued “Much has been said about the greenwashing
that takes place across the investment industry. iClima not only changes the narrative of
low carbon investments, but it alters the landscape of sustainable investments
by quantifying impact. iClima has developed a methodology
to quantify the CO2e avoidance potential of companies, a tangible measurement of impact in gigatons
of CO2e. This is the first ETF to
quantify the C02e impact it generates of potentially avoided emissions for each
company in the index and the index as a whole.”
Nik Bienkowski, Co-CEO of HANetf said “HANetf is delighted that iClima Earth
choose us to help them develop and launch the world’s first decarbonisation ETF
and it will be the first of many on the HANetf platform. This is a unique ETF which leans in to the
theme we talk about every day – limiting climate change. CLMA is a unique as it allows investors to
make a real impact investment via an ETF.
Some climate related ETFs have experienced exponential growth in the
past 20 months and we expect this strong investor interest to continue. ”
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