To start with, the two firms are launching five thematic indices addressing global challenges such as energy security, overconsumption and climate change mitigation and adaption.
The benchmarks are:
- BITA iClima Early Stage Decarbonisation Solutions index
- BITA iClima Long Duration Clean Energy Storage index
- BITA iClima Climate Change Adaptation index
- BITA iClima Circular and Shared Economy index
- BITA iClima Renewable Energy Innovation index
Looking at the Early Stage Decarbonisation Solutions index as an example, the firms said the benchmark will include companies and services that prevent greenhouse gas emissions from being produced and are ready to scale up quickly.
Meanwhile, the partnership’s Climate Change Adaption index will be the first index to focus on solutions to help societies adapt to the consequences of rising global temperatures, which the firms said have already reached 1.1°C above pre-industrial levels.
The duo will also provide access to iClima’s data and research through BITA’s index development software, BITACORE, to allow asset managers and institutions to design, backtest, customise and analyse impact portfolios.
Gaby Herculano, CEO and co-founder of iClima, said: “The joint venture with BITA has provided us with the missing technology to scale our product offering and ultimately make a difference to the planet.
“Our collaboration as BITA iCLIMA empowers us to continue to produce tangible and forward-looking metrics that can accelerate change.”
Victor Gomez (pictured), CEO of BITA added: “While the ESG landscape is overcrowded, we see a massive opportunity for laser-focused solutions targeting the decarbonization problem.”
The partnership is iClima’s latest venture in Europe since it launched the iClima Distributed Energy UCITS ETF (DGEN) last June and then expanded its business into the US.
BITA has continued its focus on direct indexing and thematic benchmarks since it received €6m in funding from ETFS Capital last November.