Sustainability is increasingly a priority in investment decisions and investment tools designed to offset carbon emissions are becoming increasingly popular. Just in the week that the EU announced the maxi climate plan ‘Fit for 55’, aimed at reducing CO2 emissions by 55% by 2030, comes the announcement of the first actively managed sustainable ETF, the Saturna Sustainable ESG Equity HANzero™ UCITS ETF, which incorporates carbon offsetting. The fund will be labeled with the HANzero ™ carbon offsetting brand, registered by HANetf, which will work in partnership with South Pole carbon offsetting specialists to directly neutralize the carbon emissions of investments made. This is the second ETF in Europe launched by HANetf to incorporate carbon offsetting.
The details of how the first actively managed sustainable ETF works
The Saturna Sustainable ESG Equity HANzero ™ UCITS ETF is actively managed by Saturna Capital, a global asset manager with over 30 years of experience in socially responsible investing and over $ 5 billion in assets under management. It will follow the same strategy as Saturna’s US-based sustainable equity mutual fund launched in 2015 and rated with the highest rating by Morningstar (5 Globes). The Fund and the ETF are both managed by Jane Carten, CEO of Saturna Capital and MBA and Scott Klimo, CFA.
Saturna’s investment philosophy and process aim to generate consistent and sustainable returns by focusing on companies that demonstrate responsible financial characteristics such as management strength, a commitment to reduce carbon footprint, decrease water waste and waste generation, low debt and solid balance sheets.
Negative screening excludes companies engaged in higher ESG risk activities such as companies that produce alcohol, weapons, gambling or fossil fuel mining.
The fund invests globally and is agnostic in terms of geographic and industry allocations, resulting in diversification globally.
Jane Carten, CEO di Saturna Capital, he said: “Saturna Capital believes that companies that proactively manage risks related to environmental, social and governance issues contribute better to the global economy and are more resilient. We follow a proprietary ESG assessment model that uses a combination of negative and positive screening, along with financial analysis, with an emphasis on low debt, to outperform peers on a variety of ESG factors. “
Hector McNeil, co-founder and co-CEO of HANetf, added: “The assets of active ETFs are currently small relative to the size of the entire sector, but growth is strong. ETFGI recently highlighted that assets invested in active EFTs and ETPs reached a record $ 329 billion at the end of the first quarter of this year. The well-known advantages of ETFs – intraday trading, shortability, lendability, having a portfolio of ETFs held in one location, portability of positions between trading venues, low entry and diversification costs – are becoming increasingly popular. The time has come to bring these benefits to the world of active management, creating more choice and more opportunities for both institutional and retail investors. “