iClima Earth is set to launch the world’s first ESG UCITS exchange traded fund (ETF) on the HANetf platform, which will be listed on London Stock Exchange in June 2021.
The iClima Distributed Renewable Energy UCITS ETF (DGEN) provides exposure to companies promoting the decentralisation of energy generation.
The newly launched product will track the iClima Distributed Renewable Energy Index TR, which provides exposure to 50 companies in seven segments directly related to the growing distributed generation (DER) business model.
Over the past 12 months, the index has grown by 144.43 percent, and 322 percent since inception in 2017.
iClima believes the rise of distributed energy away from an aging and increasingly obsolete centralised grid model based on large fossil fuel installation has been prompted by the decentralisation of the power sector, combined with the digitalisation of grid controls and energy efficiency, and the decarbonisation of our energy mix.
It also forecasts that the electrification of transportation and heating will increase the need to add more renewable based solutions to the system.
Gabriela Herculano, chief executive officer of iClima Earth and founder of the iClima Distributed Renewable Energy UCITS ETF said: “Our new decentralised renewable energy ETF, DGEN, offers investors the opportunity to do this by investing in companies at the forefront of the huge and rapidly growing distributed generation renewable energy market. It shines a spotlight on the relevant companies enabling electricity generation and storage using renewable energy sources in a local, decentralised, and modular way. Flexible technologies in distributed renewable generation collect energy from many sources, lowering environmental impact and increasing security of supply.”
Hector McNeil, co-chief executive officer of HANetf added: “iClima Distributed Renewable Energy UCITS ETF (DGEN) is yet another added value and unique HANetf is adding to its burgeoning thematic ETF portfolio. HANetf innovative platform allows asset managers to launch new ETFs in record time and offer end investors the themes they are looking for. DGEN is clearly a great way for investors to invest in these rapidly growing ESG sector and a great addition to HANetf’s thematic ESG range.”
The launch of DGEN, follows the unveiling of iClima’s first ETF, iClimaGlobal Decarbonisation Enablers UCITS ETF.