Fintech business investing in ‘shovels’ during the de-carbonising ‘gold rush’

by | Feb 10, 2021

Impact fintech business iClima Earth has returned over 80% in the last 12 months through their Global Decarbonisation Enablers UCITS ETF. iClima Earth are calling on investors to focus more on market segments that support companies directly implementing a transition to a low carbon economy.

The index, which delivered a return of 83.51% in USD terms in the last 12 months, is tracked by the iClima Global Decarbonisation Enablers UCITS ETF (ticker: CLMA).The ETF launched in December 2020 via the HANetf platform and is listed on the London Stock Exchange, Deutsche Boerse’s Xetra and Borsa Italiana.

Gabriela Herculano, CEO of the iClima Global Decarbonisation Enablers ETF commented: “Using the California goldrush analogy, these are the companies supplying the shovels. We see tail winds supporting the positive trends for these ‘climate champions’ coming from global agreements and targets combined with green stimulus and policies and a positive shift in consumer behaviour.

“A fundamental shift can happen if more capital flows into the segments that support the transition to a low carbon economy, accelerating the uptake of existing individual and system solutions, and encouraging the development of new solutions.

“This is a unique approach and currently there is no ETF with a similar focus and ability to quantify impact with a tangible and clear metric.”

iClima has spent over 15 months quantifying the CO2 avoidance that each company in the iClima Global Decarbonisation Enablers Index can generate from annual sales. It analyses the solutions to assess those that are transient (such as a plant-based Beyond Meat burger, or a telepresence call on Zoom) and those that are based on products with long useful lives (such as a Siemens Gamesa wind turbine, or a Tesla EV car), with avoidance that has an impact over the long term.

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