Norilsk Nickel’s Global Palladium Fund has launched the world’s first exchange-traded commodity (ETC) offering exposure to physically-backed carbon neutral nickel.
The GPF Physical Carbon Neutral Nickel ETC (NIC0) is listed on the Vienna stock exchange with a total expense ratio (TER) of 0.75%.
Tracking the spot price of nickel, NIC0 becomes the first ETC to offer physical replication of the metal after Nornickel produced its first batch of certified carbon neutral metal in July.
The firm said carbon neutrality is achieved through its long-term strategy to cut greenhouse gas emissions through each stage of the production chain, from underground mining to refining.
This includes an upgrade to the hydro plant that powers its production facilities in the Norilsk Industrial District, the upgrade and repair of power equipment, the implementation of an automated control and metering system, reduction of heat losses in buildings and pipelines, and decommissioning of obsolete power units.
The methodology behind NIC0’s carbon neutrality is accredited by international auditors EY and Sphera GmbH. The metals underlying the strategy are sourced from producers which comply with the Sustainable Development Goals of the United Nations 2030 Agenda.
GPF’s latest ETC will also benefit from the transparency and security offered by IBM’s Hyperledger Blockchain technology in the metal custody chain. By recording individual bar serial number and cathode information, investors are protected by an immutable custody chain.
Targeting institutional investors, NIC0 has a minimum investment cap of $100,000.
Alexander Stoyanov, CEO of GPF, said: “Investors can take advantage of low-cost access to nickel which has a fundamental role in the transition to clean energy in the knowledge it has been mined and produced responsibly.”
NIC0 becomes the GPF’s seventh launch of the year and follows the arrival of the world’s only physical copper and nickel ETCs, the GPF Physical Copper ETC (TCOP) and the GPF Physical Nickel ETC (TNIK) in June.