Why do we
do it?

We need to halve greenhouse gas emission levels by 2030 for a 50% chance of limiting global warming to 1.50 Celsius. To achieve this goal, up to $120 trillion in global infrastructure investments will be needed before 2050. Currently, portfolio managers pursuing low carbon strategies have to choose benchmarks that rely on low carbon emission companies, when what is needed is high carbon avoidance companies.

Most “green” benchmarks rely only on companies with low overall carbon emissions (e.g. banks and tech companies), or companies that have committed to reducing their carbon footprint (which often included offsets). While we applaud the companies that are focusing on doing less harm, we believe the planet and retail investors need to have the option to focus and invest into the Climate Champions - the companies that support solutions that can create a fossil fuel free economy.

What do
we do?

We believe capital markets, companies and private investors can be a source of great impact in fighting climate change. iClima Earth has created an equity benchmark index that both active and passive portfolio managers can use to create investment products that target the companies that make impactful contributions to solving climate change.

Own CO2 Avoidance Methodology

We have developed a methodology to quantify the impact of the companies that can decarbonise the planet, focusing on the C02 avoided by their products and services

Comprehensive Security Vetting

We have analysed over 200 companies in terms of CO2 avoidance, while designing an index with variety of exposure to different jurisdictions and market cap

Top benchmark support

We work with an impressive group based in Germany, that support our Clima Global Decarbonisation Enablers Index, leveraging decades of experience in benchmark administration

Focused & independent

Clima is not associated with any incumbent investment managers or financial institutions. We have a laser focus and are committed to one thing and one thing only – the decarbonisation of the planet

Look beyond carbon emission data

We are done with "doing less harm" Let's do actual good

Due to inaccurate taxonomy and complexity on data collection, asset managers pursuing green strategies currently focus on low carbon emission companies. A big problem is that focusing on low carbon emission companies can justify portfolios of companies that are actually big polluters

That is because the carbon emissions of a company and its products fall into three categories:

Scope 1: Direct emissions from activities that a company controls (for example, combustion of carbon fuel on site, by its vehicle fleet, air conditioning, etc)

Scope 2: Indirect emissions from energy purchased and used by the company

Scope 3: All other indirect emissions coming from a company’s supply chain (sources a company does not control or own) or from the use of its products

Understandably, Scope 3 emissions are hard to calculate. Therefore, the low carbon equity benchmark industry focuses on companies with low Scope 1 and Scope 2. Most companies that self-report carbon emissions focus only on Scope 1 and Scope 2. If we take the oil industry as an example, the vast majority of an oil company’s emissions derive from the use of their hydrocarbon products by the end users. It is estimated that for European oil majors, Scope 3 emissions are eight times larger than Scope 1 and Scope 2 combined.

To invest into the most important providers of solutions to the emissions problem, the investment management industry needs an equity benchmark that actually estimates avoidance of CO2.

Low carbon ETFs and index funds using only Scope 1 and Scope 2 Emissions data have been set up with the intention of helping the environment, but portfolios are unlikely to create a positive impact. Clima’s benchmark can help investment managers create true impact.