What is Carbon Offsetting?

A carbon offset is the act of compensating for the emissions of carbon dioxide or other greenhouse gases produced, therefore reducing the amount of CO2.

We believe there are two ways to achieve reducing the amount of CO2 in the atmosphere:

Avoided emissions

• This relates to reducing emissions through the use of green energy, such as wind, solar, and tidal.
• The success of avoided emissions will be determined by the rate at which clean energy can be adopted.

Carbon sequestration

• On the other hand, carbon sequestration can help reduce emissions that have already been produced.
• This can be done through reforestation, reduction in deforestation, the introduction of alternative income sources in developing countries, and more.

What is HANzero?

HANzero™ is a scheme run by HANetf in which we endeavour to neutralise the Scope 1 and 2 emissions of a portfolio by buying Carbon Offsets in approved projects. This scheme is the first of its kind in Europe for ETFs and will help to increase awareness, whilst reducing carbon emissions within the atmosphere.

Through the HANzero™ programme, we aim to work alongside our partners to help offset the carbon emissions associated with their products.

To do this, we will work in conjunction with leading carbon offset experts, who provide a range of certified, climate-positive projects, in which we can support

ESG is becoming normal in investing. However even ESG-friendly strategies, including low carbon investments, still carry a carbon footprint. Many companies and organisations have a goal to achieve carbon neutrality by 2050 but we at HANetf believe this is too late. We believe that HANzero™ provides a practical solution to this problem.

About HANzero™ Carbon Offsets

HANetf will be partnering with a third carbon offset specialist to deliver HANzero™.

Our partners will help HANetf purchase carbon offsets via projects linked to the UN’s Sustainable Development Goals.

Projects are upheld to the standards set by the International Carbon Reduction and Offset Alliance (ICROA) and are subject to full screening, third party auditing and in house due diligence (for example, Verra)

Projects result in ‘additionality’, meaning that without funding, the projects would not be able to proceed.

All projects are audited and certificated upon carbon offset completion.

Associated costs will be paid for by the fund’s fixed TER.

Sources: Trucost; United Nations

The benefits of Carbon Offsetting to ETFs

Global warming is our planet’s greatest challenge and action is required now if we are to meet the emissions targets laid out in the Paris Agreement.

This is incumbent on everyone, including the investment management sector

From a corporate perspective, the instructions are clear: reduce, report and compensate. What that means is that reducing direction emissions should take priority, businesses should consider offsetting as an immediate action towards zero carbon.

By contributing towards carbon offset projects, we can develop job opportunities in local communities, protect biodiversity, improve health and well being, as well as working directly to limit carbon.

HANetf products with carbon offsets

SESG
ZERO