Europe’s first ETF which includes carbon offsetting, with launch of Clean Energy UCITS ETF
- Clean Energy ETF (ticker: ZERO) is Europe’s first ETF
which includes carbon offsetting and will allow investors to neutralise their
investment’s carbon footprint in one single trade.
- ZERO provides investors with access to the pure-play S&P
Global Clean Energy Select Index focused on 30 companies.
- HANetf appeals to those investors who prefer a pure-play
global clean energy exposure
believes investors don’t want to wait until 2050 for companies to transition to
carbon neutral activities and HANzero™ allows a specific investment solution in
advance of that.
Purpose Investments and HANetf have today announced the launch of HANetf S&P Global Clean Energy Select HANzero™ UCITS
ETF (ticker: ZERO), which will
list on London Stock Exchange in June and will be passported for sale across
HANetf S&P Global Clean Energy Select
HANzero™ UCITS ETF will be Europe’s first exchange traded fund,
which incorporates carbon offsetting, in order to give environmentally
conscious investors the opportunity to target capital growth with the reassurance that any carbon
emissions linked to their investment will be offset. When you
trade ETFs your capital is at risk.
Europe’s first carbon offset ETF
ESG focused strategies are only a partial solution. They have stock selection
to screen for E, S & G related skews. Some even focus on decarbonisation or
low carbon strategies. However, under every solution there is residual carbon
impact. HANetf’s HANzero™ offset solution addresses this in an efficient and cost-effective
has launched Europe’s first ETF with a carbon offset and intends to apply
HANzero™ to future ETF launches where appropriate. A carbon offset project reduces emissions of carbon dioxide
or other greenhouse gases made to compensate for emissions produced elsewhere.
S&P DJI publishes the Carbon to Value Invested (Metric
Tons CO2 per $1m invested) for the index on a monthly basis. HANetf will use
this data to calculate a daily accrual which will then be offset with auditable
and certificated climate-positive projects selected with leading carbon offset
specialists, South Pole.
Projects are upheld to the standards set by the International
Carbon Reduction and Offset Alliance (ICROA) and are subject to full screening,
third party auditing and in house due diligence. Associated costs will be taken
from the fund Total Expense Ratio (TER) and will not impact performance.
The offset programmes will be paid for
within the TER of the ETF and investors will not pay any extra for being able
to offset the investment’s carbon impact. The uniqueness of this offering is
recognised by HANetf trademarking the process HANzero™. Where investors see
this trademark they will understand that their investment has been offset.
companies that have an extreme carbon-to-revenue footprint are excluded. South
Pole will provide carbon offset projects linked to the UN’s Sustainable
Development Goals and projects are upheld to the standards set by the
International Carbon Reduction and Offset Alliance.
Through the HANzero™ programme, we
will be looking to contribute initially towards two projects, each of which
contributes towards a range of the UN’s Sustainable Development Goals:
Topaiyo Forest Conservation
with the indigenous landowners in New Ireland, this project protects vital
rainforest from deforestation. It recovers the land‘s rich biodiversity and
revitalises its natural carbon stocks, in turn combating global climate change
and enhancing the social and economic development of one of the poorest and
most isolated areas of Papua New Guinea.
on the island of Sumatra, Indonesia, addresses issues in rural Sumatra such as
poor electricity access and the lack of quality employment opportunities – as
well as fostering sustainable economic development.
We’ve selected these projects, in
part, due to their respective links to the reduction (or avoidance) of carbon.
The S&P Global Clean Energy Select
ZERO will track the S&P Global Clean Energy
Select index providing exposure to the 30 largest pure play companies across
biofuel, fuel cell technology, geothermal energy, hydroelectricity, solar and
wind. This provides an alternative to
investors who prefer a more focused and targeted selection of global clean
energy stocks versus the broader S&P Global Clean Energy Index. Some asset
managers who used this index have pivoted to a new version of the index which includes
more companies and broadened the classifications. ZERO
will meet the needs of investors who wish to continue to follow the original,
purer play index.
Nik Bienkowski, co-Founder and co-CEO
at HANetf, said:
“Environmentally conscious investors
can now target capital growth with the HANetf S&P Global Clean Energy
Select HANzero™ UCITS ETF, ZERO, safe in the knowledge that any carbon
emissions linked to their investment will be offset in some exciting global climate
positive projects with our partners at South Pole.
HANetf are deeply concerned about
climate change and want to be able to offer products to environmentally focused
investors. That’s why we have created the
first ETF in Europe with the ability to offset carbon. Investors are demanding
action from their investment providers, and we are delivering new and
innovative ESG features such as the carbon offset under our trademark HANzero™
HANetf is always at the cutting edge
of innovation in the ETF market and we feel HANzero™ maybe our most impactful
innovation to date.”
Som Seif, Founder and CEO of Purpose Investments said:
“The election of President Biden has increased optimism about
green policies as demonstrated by the US re-joining the Paris Agreement. The increased commitment by other leading
countries is rapidly building momentum to tackle climate change and decarbonisation
is at the centre of this shift linked to Government policy and the improving economics
of the underlying technologies.