Impact fintech business iClima Earth is set to launch a carbon avoidance ESG ETF via white-label platform HANetf.
The iClima Global Decarbonisation Enablers UCITS ETF (CLMA) will list on London Stock Exchange later this month with a total expense ratio (TER) of 0.65%.
Tracking the iClima Global Decarbonisation Enabler index, CLMA offers exposure to companies that offer products and services that enable CO2e avoidance solutions and quantify that impact.
Its benchmark was designed using a tiered approach that tries to avoid overweighting large cap stocks and maintain a balanced exposure to climate change solutions.
While there has been a growing trend of ETFs offering exposure to companies actively reducing their CO2 emissions, CLMA offers exposure to the companies that are enabling these firms to do so.
CLMA has a focus on five sub-sectors including green energy, green transportation, water and waste improvements, decarbonisation enabling solutions and sustainable products.
Gabriela Herculano, CEO of iClima Earth, commented: “Much has been said about the greenwashing that takes place across the investment industry and iClima not only changes the narrative of low carbon investments, but it alters the landscape of sustainable investments by quantifying impact.
“This is the first ETF to quantify the CO2e impact it generates of potentially avoided emissions for each company in the index and the index as a whole.”
Nik Bienkowski (pictured), co-CEO of HANetf, added: “CLMA is a unique ETF which leans into the theme we talk about every day – limiting climate change.
“It 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.”