HANetf has launched what it claims is Europe’s first ETF to offset the carbon dioxide and other greenhouse gas emissions of related investments.
The Clean Energy ETF, which has the ticker ZERO, will access the S&P Global Energy Selector index. This is a pure play index focused on 30 companies and is listed on the London Stock Exchange.
HANetf said it is Europe’s first ETF designed 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.
S&P DJI publishes the carbon to value invested (metric tons of 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 specialist, South Pole.
HANetf will assess projects based on the standards established by the International Carbon Reduction and Offset Alliance, which are subject to full screening, third party auditing and in house due diligence. Associated costs will be taken from the fund’s total expense ratio (TER) and will not impact performance.
The offset costs will be covered within the TER and operated under the banner of HANzero, which is a trademark recognising the carbon offsetting plans. The ETF will meet Article 8 considerations under the Sustainable Finance Disclosure Regulation.