ETF Provider Evolve Funds Group announced today plans to launch the Evolve S&P 500 CleanBeta (FIVE) and Evolve S&P/TSX 60 CleanBeta (SIXT) ETFs, aiming to bring carbon neutrality to the flagship North American indices.
The new funds aim to provide investors with the performance of the underlying indices, while offsetting the carbon footprint of the securities in the portfolios.
Raj Lala, President and CEO at Evolve, said:
“We’ve observed a number of challenges related to ESG investing adoption. From inconsistent screening methodologies to a narrowing of the investable universe resulting in a change of the overall return profile. We think CleanBeta helps solve many of these issues by providing investors with a simple solution to make traditional indices carbon neutral.”
According to Evolve, the new ETFs will employ a variety of strategies, including purchasing and retiring carbon credits, as a means to neutralize the full carbon footprints of the indices. Evolve will rely on a carbon footprint calculation provided by S&P Dow Jones Indices utilizing S&P Global’s Trucost, in order to determine the carbon exposure of the companies in each index.
Aye Soe, Managing Director and Global Head of Product Management at S&P Dow Jones Indices, said:
“S&P Dow Jones Indices has been a pioneer in creating sustainable benchmarks from the introduction of the Dow Jones Sustainability Index in 1999 to the launch of the S&P/TSX Composite ESG Index and S&P/TSX 60 ESG Index in Canada last year. As investors continue to stress the importance of indices that incorporate sustainability data and principles, we are always looking for new and innovative ways to bring choice to the market. We’re excited to work with Evolve in licensing the S&P 500® and S&P/TSX 60® for these new ETFs.”