BetaShares to launch Climate Change Innovation ETF
Australian ETF manager, BetaShares, is planning to launch the BetaShares Climate Change Innovation ETF (ERTH), providing investors with exposure to global companies at the forefront of tackling today’s climate and environmental challenges.
It is estimated that the additional investment required to achieve a global zero carbon-emissions economy by 2050 will be USD1-2 trillion pa. As a result, the demand for products and services to deal with the climate and environmental threats is anticipated to grow strongly in the decades ahead.
BetaShares CEO, Alex Vynokur, says: “The potential catastrophic impact of climate change and other environmental threats cannot be overstated. However, these challenges also present opportunities. Our new fund will provide exposure to global companies leading the fight, and likely to benefit from what we believe is a long-term megatrend.”
Companies included in the index that ERTH will aim to track fall into the following sectors:
Water and waste improvements
Companies with revenues from fossil fuel activities, and certain other negative business activities, will be excluded.
Vynokur says: “The scale of the challenge the world faces means that innovation is called for in a range of climate- and environmentally-friendly activities. A focus on renewable energy is essential, but the deep cuts to carbon emissions that will be required to limit global warming cannot be achieved by clean energy alone. That’s why ERTH will provide broader exposure to a comprehensive list of climate change solutions. This will include not only clean energy but electric vehicles, energy efficiency technologies, sustainable food, water efficiency and pollution control – in short, a broad range of solutions that directly enable the reduction or avoidance of carbon emissions. This is the essential objective if the world is to effectively address climate change.
“We are excited to be able to offer investors access to a portfolio of companies that can be expected to benefit as the global economy transitions to a more sustainable model. In addition, investors in ERTH can be confident that their investment dollars are having a positive impact, by supporting companies that are leading the fight to create a more sustainable planet.”