Investment Funds with carbon emissions offset
We want to offer our clients a number of investment funds that have an in-built carbon offset mechanism. This is a novel approach where investments in carbon credits are used to balance the CO2 produced by the portfolio companies.
Benefits
- Carbon (co2) neutral investments
- Support existing sustainable projects that contribute to co2 reduction
- Incentivise the launch of new sustainable projects which contribute to co2 reduction
- Contribute to the un sustainable development goals (sdgs)
- Contribute to achieve the 2 degrees global temperature target (paris climate accord)
Issue
Many investors are already looking to address climate change by investing in low carbon and sustainable mutual funds. However, some level of carbon emission due to the activities of the underlying companies remain unavoidable for the time being.
Investors who want to go further and fully neutralize the carbon emissions of their investments have no alternative choices at the moment.
Solution
In order to fully neutralize the carbon footprint of their investments, the purchase of carbon credits remains the only practical way of completely offsetting the residual carbon emissions.
Carbon credits are generated for example by projects which reduce or help avoid CO2 levels in the atmosphere. Examples include forestry regeneration or replantation projects. When sufficient carbon credits are purchased the residual carbon emissions from the portfolio can be balanced out. The purchase of carbon credits incentivises market players to launch more projects which reduce CO2 levels further. We will make use of Voluntary Emission Reductions (VERs), an over-the-counter market for carbon credits.
We are introducing full carbon offsets in some mutual funds and / or provide specific share classes which have a full offset mechanism.