A new ESG-focused exchange-traded fund will be launched in London next week in a partnership between HanEtf and iClima Earth.
The iClima Global Decarbonisation Enablers UCITS ETF (LON:CLMA, LON:CLMP), which is scheduled to list on the London Stock Exchange on December 8, will give investors access to a wide range of companies that are offering products and services that directly enable CO2 avoidance.
It will track the iClima Global Decarbonisation Enablers Index, which currently contains 151 companies that are expected to potentially help the world avoid over 0.6 gigatonnes of carbon dioxide equivalent (C02e) in 2021.
Global emissions are currently at 56 gigatonnes of CO2 and by the end of the decade need to be reduced by 7.6% to reach the Paris Agreement’s goal of limiting global warming to 1.5°C above pre-industrial levels.
The index, which was developed by London-based investment research and equity indices specialist iClima Earth, was up 64.5% over the 12 months to November 19, 2020.
The ETF will be the 12th launched via the HanEtf platform and the first ESG-focused exchange-traded product issued on the platform when it lists next Tuesday.
Gabriela Herculano, chief executive 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.”
Nik Bienkowski, co-CEO of HANetf, said: “HANetf is delighted that iClima Earth chose 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.”