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Impact Shares partners with Climate Vault to neutralise the carbon footprint of the Sustainable Development Goals Global Equity ETF (NYSE: SDGA)  

Impact Shares, described as the first 501(c)3 non-profit ETF sponsor in the US, has announced its partnership with Climate Vault, a non-profit that has created a verifiable, integrated carbon reduction and removal solution, to neutralise the carbon emissions of the portfolio holdings of the Impact Shares Sustainable Development Goals Global Equity ETF (NYSE: SDGA).

The firm writes that through this partnership, Climate Vault reduced 370 metric tons of carbon emissions, which Impact Shares believes is approximately equivalent to that generated by the portfolio holdings of SDGA.. Climate Vault accomplished this by purchasing allowances on government-regulated compliance markets and “vaulting” them — storing them within the Climate Vault accounts in these compliance markets — to prevent polluters from using them.

Climate Vault will use the monetary value of these vaulted allowances to purchase carbon dioxide removal (CDR) technology that will eliminate historical carbon emissions, an essential step to slowing and reversing climate change. By partnering with Climate Vault to reduce SDGA’s carbon footprint, Impact Shares writes that it will automatically receive access to the most forward-thinking CDR technology, which has been independently audited and vetted by Climate Vault’s Technology Chamber. The Technology Chamber is composed of world-renowned experts and chaired by former Secretary of Energy Ernest Moniz.

“In the current political and regulatory environment, the private sector has an immense responsibility to lead the fight against climate change,” notes Ethan Powell, CEO and Founder of Impact Shares. “Impact Shares is committed to creating innovative financial vehicles to help solve our world’s most pressing social and environmental problems. We’re honored to partner with Climate Vault as we play our part in the transition to a more sustainable global economy.”

As a pioneer in impact investing, Impact Shares writes that it is the first non-profit ETF sponsor to partner with Climate Vault to decarbonise an ETF. Backed by The Rockefeller Foundation, Impact Shares helps organisations such as the NAACP, YWCA and United Nations Capital Development Fund (UNCDF) translate their values into an investable product traded on the New York Stock Exchange. SDGA tracks the Morningstar Societal Development Index, which is designed to measure the performance of large and mid-capitalisation companies globally that (i) display a commitment to the UN’s Sustainable Development Goals, (ii) adhere to the principles of the UN Global Compact, (iii) display a commitment to reducing poverty and supporting economic development globally and (iv) have exposure to countries with low levels of socioeconomic development.

Named to Fast Company’s “World Changing Ideas 2022 list,” Climate Vault has, since its launch in 2021, reduced three quarters of a million megaton of carbon, the equivalent of preventing 72,000 passenger cars from driving around the Earth, the firm writes.

The firm adds that through this innovative partnership, Impact Shares and Climate Vault are working to modernise and disrupt the conventional exclusionary approach to ESG, which while well-intended, has minimal quantifiable impact on addressing carbon emissions. As a forward-looking, data-driven antidote, Impact Shares and Climate Vault are working to measurably reduce and remove carbon from an ETF.

“There is exploding demand for ESG financial products but oftentimes their impact on global CO2 emissions is unclear,” says Michael Greenstone, Co-Founder of Climate Vault and Milton Friedman Distinguished Service Professor of Economics at the University of Chicago, and former Chief Economist for President Obama’s Council of Economic Advisers. “We’re excited to partner with Impact Shares in an effort to make their Sustainable Development Goals Global Equity ETF carbon neutral – benefiting both investors and, more importantly, the planet. This is about moving the environment and business forward together and creating a healthier, better future for our kids and their kids.”

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