BetaShares Climate Change Innovation ETF (ASX: ERTH)

Product Name

BetaShares Climate Change Innovation ETF (ASX: ERTH)

Issuer

BetaShares

Category

Investment

Type

Exchange Traded Fund - ETF (inc. ETP)

Target

Retail, Wholesale, Institutional

Certified Since

2021

Asset Classes

International equities

Markets

Australia

Investment Approaches

Sustainability themed, Negative Screening

It Includes:

  • Riaa icons 10 Renewable energy and energy efficiency
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water

It has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 50 Nuclear power
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

    Overview

    ERTH aims to track the performance of an index (before fees and expenses) that comprises a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.


    Description


    ERTH’s Index components are selected based on a list of products and services that enable CO2 avoidance across five broad strategies:

    a.     Green Energy
    b.     Green Transportation
    c.      Water & Waste Improvements
    d.     Enabling Solutions
    e.     Sustainable Products

    CO2 avoidance is classified into four sources:

    a.     direct reduction of GHG emissions from fossil fuel energy generation or burning; 
    b.     enabling avoidance via renewable energy generation;
    c.     enabling of energy savings; or
    d.     carbon sequestration.

    Companies are then selected based on their percentage of revenue derived from these carbon avoidance sources (with a minimum revenue threshold of 50%).

    Through this process, selected companies are actively supporting the process of decarbonisation, assisting in reaching the goal of approaching net-zero by 2050. 

    In addition, the following negative screens are applied to all holdings based on revenue:

    ·        Armaments
    ·        Nuclear energy
    ·        Coal
    ·        Oil
    ·        Natural gas
    ·        Fossil fuel
    ·        Alcohol
    ·        Adult entertainment
    ·        Gambling
    ·        Tobacco

    Other products certified by the Responsible Investment Association Australasia (RIAA)

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    BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

    BetaShares Global Sustainability Leaders ETF – Currency Hedged (ASX: HETH)

    BetaShares Sustainability Leaders Diversified Bond ETF - Currency Hedged (ASX: GBND)

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