The new product, HANetf S&P Global Clean Energy Select HANzero™ UCITS ETF (ZERO), is listing on the LSE on 30 June and will be passported for sale across Europe.
The ETF offsets the carbon emissions from its investments based on monthly emissions data published by the S&P DJI, a strategy HANetf intends to apply to future ETF launches, where appropriate, under the HANzero trademark.
The offset programme adheres to the standards set by the International Carbon Reduction and Offset Alliance (ICROA), with associated costs taken from the TER, which is 0.55%, without affecting the product’s performance.
The product tracks the S&P Global Clean Energy Select index, which offers exposure to the 30 largest pure play companies across biofuel, fuel cell technology, geothermal energy, hydroelectricity, solar and wind.
The index excludes any companies that have an extreme carbon-to-revenue footprint, with the ETF listed as an Article 8 fund under the Sustainable Finance Disclosure Regulation (SFDR).
Nik Bienkowski, co-founder and co-CEO at HANetf, said: “HANetf are deeply concerned about climate change and want to be able to offer products to environmentally focused investors. That is 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, added: “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 not only delivers access to the most exciting pure-play clean energy companies but it offers an article 8 product under SFDR and the opportunity to remove an investor’s carbon footprint.”