Europe's first carbon-neutral exchange traded fund

A new exchange-traded fund is in the process of being listed in London that will be the first in Europe to offset any carbon emissions from the index that it is tracking. HANetf and Purpose are launching this exciting new venture (listed as the HANetf S&P Global Clean Energy Select HANzero UCITS ETF (LON:ZERO)) to track the S&P Global Clean Energy Select index. This index measures the performance of thirty of the largest firms in clean energy and related businesses globally.

Furthermore, the ETF will be using carbon offsetting, making use of the carbon credits created by South Pole, in order to ensure that any carbon emissions that result from the underlying securities, are compensated. Each month, Carbon-to-Value-Invested data for the index will be published by S&P DJI, allowing HANetf to calculate a daily emissions total which will be offset with the carbon credits that have been created through two initial projects funded by the EFT. These projects are the conservation of the Topaiyo rainforest in Papua New Guinea and the construction of Indonesia’s Musi River Hydro plant in Sumatra.

This great news demonstrates some of the latest exciting developments in the green finance sector and showcases the exciting possibilities for nature conservation and sustainable development coming from changes in the way we think about finance. Going green is no longer the preserve of small, specialist companies and with everyone from multinational corporations to financial funds moving in this direction, now is the time to consider ways to mitigate your own impact and future-proof your company.

If you’re interested to learn more about this, get in touch with DGB today and take your first step with us in creating a greener, more sustainable and more prosperous world.