Purpose Investments and HANetf launch Europe’s first carbon offset ETF
Purpose Investments and HANetf have launched the HANetf S&P Global Clean Energy Select HANzero UCITS ETF (ticker: ZERO), which will list on London Stock Exchange in June and will be passported for sale across Europe.
HANetf S&P Global Clean Energy Select HANzero™ UCITS ETF will be Europe’s first exchange traded fund, which incorporates carbon offsetting, in order to give environmentally conscious investors the opportunity to target capital growth with the reassurance that any carbon emissions linked to their investment will be offset. When you trade ETFs your capital is at risk.
Most ESG focused strategies are only a partial solution. They have stock selection to screen for E, S & G related skews. Some even focus on decarbonisation or low carbon strategies. However, under every solution there is residual carbon impact. HANetf’s HANzero™ offset solution addresses this in an efficient and cost-effective manner.
HANetf has launched Europe’s first ETF with a carbon offset and intends to apply HANzero™ to future ETF launches where appropriate. A carbon offset project reduces emissions of carbon dioxide or other greenhouse gases made to compensate for emissions produced elsewhere.
S&P DJI publishes the Carbon to Value Invested (Metric Tons CO2 per $1m invested) for the index on a monthly basis. HANetf will use this data to calculate a daily accrual which will then be offset with auditable and certificated climate-positive projects selected with leading carbon offset specialists, South Pole.
Projects are upheld to the standards set by the International Carbon Reduction and Offset Alliance (ICROA) and are subject to full screening, third party auditing and in house due diligence. Associated costs will be taken from the fund Total Expense Ratio (TER) and will not impact performance.
The offset programmes will be paid for within the TER of the ETF and investors will not pay any extra for being able to offset the investment’s carbon impact. The uniqueness of this offering is recognised by HANetf trademarking the process HANzero. Where investors see this trademark they will understand that their investment has been offset.
Any companies that have an extreme carbon-to-revenue footprint are excluded. South Pole will provide carbon offset projects linked to the UN’s Sustainable Development Goals and projects are upheld to the standards set by the International Carbon Reduction and Offset Alliance.
The ETF will be scheduled Article 6 under the Sustainable Finance Disclosure Regulation (SFDR).
ZERO will track the S&P Global Clean Energy Select index providing exposure to the 30 largest pure play companies across biofuel, fuel cell technology, geothermal energy, hydroelectricity, solar and wind. This provides an alternative to investors who prefer a more focused and targeted selection of global clean energy stocks versus the broader S&P Global Clean Energy Index. Some asset managers who used this index have pivoted to a new version of the index which includes more companies and broadened the classifications. ZERO will meet the needs of investors who wish to continue to follow the original, purer play index.
Nik Bienkowski, co-Founder and co-CEO at HANetf, says: “Environmentally conscious investors can now target capital growth with the HANetf S&P Global Clean Energy Select HANzero UCITS ETF, ZERO, safe in the knowledge that any carbon emissions linked to their investment will be offset in some exciting global climate positive projects with our partners at South Pole.
HANetf are deeply concerned about climate change and want to be able to offer products to environmentally focused investors. That’s why we have created the first ETF in Europe with the ability to offset carbon. Investors are demanding action from their investment providers, and we are delivering new and innovative ESG features such as the carbon offset under our trademark HANzero.
HANetf is always at the cutting edge of innovation in the ETF market and we feel HANzero™ maybe our most impactful innovation to date.”
Som Seif, Founder and CEO of Purpose Investments, says: “The election of President Biden has increased optimism about green policies as demonstrated by the US re-joining the Paris Agreement. The increased commitment by other leading countries is rapidly building momentum to tackle climate change and decarbonisation is at the centre of this shift linked to Government policy and the improving economics of the underlying technologies.
"As global consensus solidifies behind the fight against climate change, The HANetf S&P Global Clean Energy Select HANzero UCITS ETF (ZERO) not only delivers access to the most exciting pure-play clean energy companies but it offers an article 6 product under SFDR and the opportunity to remove an investor’s carbon footprint.”