Evolve Funds Group announced May 3 that it has filed the final prospectus to launch exchange traded funds that bring carbon neutrality to traditional indices.
The company says that Evolve S&P/TSX 60 CleanBeta Fund (SIXT) and the Evolve S&P 500 CleanBeta Fund (FIVE) “provide investors with the performance of traditional indices, while striving to offset the carbon footprint of the securities in the portfolios.” SIXT and FIVE are expected to begin trading on May 10 on the Toronto Stock Exchange, subject to TSX approval.
"We've observed a number of challenges related to ESG investing adoption," says Raj Lala, President and CEO at Evolve. "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."
In order to offset the carbon in these portfolios, Evolve will rely on a carbon footprint calculation provided by S&P Dow Jones Indices using Trucost, a division of S&P Global. The data and analysis provided by Trucost will determine the carbon exposure of the companies in the indices. SIXT and FIVE will employ a variety of strategies, including purchasing and retiring carbon credits, as a means to neutralize the full carbon footprints, says Evolve.