Impact fintech iClima Earth is launching an ESG Ucits ETF that aims to provide exposure to companies offering products and services that enable CO2e avoidance solutions, as reported by ESG Clarity in the UK.
The iClima Global Decarbonisation Enablers UCITS ETF will list on the London Stock Exchange in early December and track the iClima Global Decarbonisation Enablers Index.
Gabriela Herculano, CEO of iClima Earth said: “iClima Earth estimates the 151 companies in the iClima Global Decarbonisation Enablers Index can potentially avoid over 0.6 gigatonnes of C02e in 2021 – the planet needs to avoid 4.26 gigatonnes of new emissions in 2021 to reach the goal of limiting global warming to 1.5 degrees celsius.”
The fund will provide exposure to new technologies and companies that reduce and avoid carbon emissions across five subsectors: green energy, green transportation, water and waste improvements, decarbonisation enabling solutions and sustainable products.
“There are many ‘green’ investment products already on the market that use complex ESG scores or focus on low-carbon companies doing less harm,” Herculano said. “However, the best way to reduce CO2e in the atmosphere is to find lower-emission alternatives to products and services, thereby ‘avoiding’ emission.”
The ETF has a TER of 0.65% and is thought to be the first carbon avoidance Ucits ETF.