Purpose Investments Inc. (“Purpose”) is thrilled today to launch the HANetf S&P Global Clean Energy Select HANzero UCITS ETF (“the Fund”), Europe’s first exchange traded fund that incorporates carbon offsetting. The Fund, which is trading on the London Stock Exchange under the ticker ZERO, is being made available through Purpose’s partnership with HANetf, an independent European ETF specialist backed by renowned investor Steve Cohen’s Point72 Ventures.
Most ESG-focused strategies are only partial solutions that leave residual carbon impact. The Fund’s HANzero™ offset solution addresses this in an efficient and cost-effective manner, giving investors the opportunity to target capital growth with the reassurance that any carbon emissions linked to their investment will be offset.
The Fund will track the S&P Global Clean Energy Select Index, providing exposure to the 30 largest pure-play companies across the biofuel, fuel cell technology, geothermal energy, hydroelectricity, solar and wind sectors. 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.
The Fund, which is the first of its kind for European investors, will be passported for sale to other markets across Europe this summer.
“Climate change is one the greatest challenges humanity will face in the 21st century, but with challenge comes opportunity—particularly for businesses on the leading edge of innovation where the imperative of solving critical problems is most acute. This is the case with clean energy, where delivering solutions at scale is the key to enabling a successful global strategy. We believe this represents a tremendous long-term opportunity for investors and are excited to partner with HANetf to deliver it,” said Som Seif, CEO and founder of Purpose Investments.
ESG is a core factor embedded across Purpose Investment’s investment process and at the foundation of how it thinks about building products. This Fund follows the launch of Purpose’s Global Climate Opportunities Fund (CLMT) earlier this year on April 27, 2021.
Data from the S&P Dow Jones Index’s Carbon-to-Value-Invested figure will be used to calculate a daily accrual, which will then be offset with auditable and certificated climate-positive projects linked to the UN’s Sustainable Development Goals and selected with leading carbon offset specialist, South Pole.
Projects will be upheld to the standards set by the International Carbon Reduction and Offset Alliance 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 programs will be paid for within the TER of the ETF, meaning that 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 as HANzero. Where investors see this trademark, they will understand that their investment has been offset.
The ETF will be scheduled Article 6 under the Sustainable Finance Disclosure Regulation (“SFDR”).
“You shouldn’t have to sacrifice long-term capital growth for socially responsible investing. This Fund’s carbon offsetting innovation proves this point, making the responsible choice an easy choice for investors,” Seif concludes.
For more information on the Fund, please visit: https://www.hanetf.com/product/25/fund/hanetf-sp-global-clean-energy-select-hanzero-ucits-etf-acc
About Purpose Investments
Purpose Investments is an asset management company with more than $11 billion under management. Purpose Investments has an unrelenting focus on client-centric innovation, and offers a range of managed and quantitative investment products. Purpose Investments is led by well-known entrepreneur Som Seif and is a division of Purpose Financial, an independent technology-driven financial services company.
HANetf is an independent ETF provider founded by two of Europe’s leading ETF pioneers, Hector McNeil and Nik Bienkowski, to challenge conventional approaches to ETF product development and create distinctive opportunities for investors. HANetf’s unique UCITS ETF range is the result of close collaboration with leading asset managers that leverage HANetf’s full-service white-label ETF platform to simplify the set-up, launch and distribution of their investment ideas. For more information on HANetf, please visit https://www.hanetf.com/
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The S&P Global Clean Energy Select Index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”), and has been licensed for use by HANetf. Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by HANetf. HANetf S&P Global Clean Energy Select HANzero™ UCITS ETF is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, or their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P Global Clean Energy Select Index.
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