London Stock Exchange welcomes iClima Earth and HANetf Celebrating the launch of iClima Global Decarbonisation Enablers UCITS ETF
Impact fintech business, iClima Earth, will launch the world’s first ESG UCITS exchange traded fund that provides exposure to companies offering products and services that enable CO2e avoidance solutions1, and quantify that impact.
The iClima Global Decarbonisation Enablers UCITS ETF (ticker: CLMA) will launch via the HANetf platform and will list on the London Stock Exchange in early December. CLMA will be the first ESG focused ETF issued by HANetf.
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 climate change UCITS 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 Celsius2.
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 levels3.
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 months4. Past performance is no guarantee of future performance.
1Source: iClima Earth, data from ETFGI
2Source: CO2e estimations of the 151 companies done by iClima Earth. The planet needs to avoid 4.26 GtCO2e of CO2e emissions in 2021 to be on track with a 1.5o Celsius goal based on the UN Emissions Gap Report 2019. Complete methodology developed by iClima Earth can be found here
3To meet targets, IPCC expects annual investment needs to triple to USD1.6 trillion/year until 2050. CPI estimates that annual flows in 2018 reached US$579billion.
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4Source: iClima Earth, as of 19.11.2020
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