DALLAS–(BUSINESS WIRE)–Impact Shares, Corp., the first 501(c)3 nonprofit ETF sponsor in the U.S., today announces its partnership with Climate Vault, an award-winning nonprofit that created the world’s first verifiable, integrated carbon reduction and removal solution, to neutralize the carbon emissions of the portfolio holdings of the Impact Shares Sustainable Development Goals Global Equity ETF (NYSE: SDGA).
Through this partnership, Climate Vault reduced 370 metric tons of carbon emissions, which Impact Shares, Corp. 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 cutting-edge 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 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 is the first non-profit ETF sponsor to partner with Climate Vault to decarbonize an ETF. Backed by The Rockefeller Foundation, Impact Shares helps organizations 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-capitalization 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 ¾ of a million mt of carbon, the equivalent of preventing 72,000 passenger cars from driving around the Earth.
Through this innovative partnership, Impact Shares and Climate Vault are working to modernize 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,” said 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 – benefitting 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.”
About Impact Shares
Impact Shares is a nonprofit fund sponsor and investment manager that is creating a new and innovative platform for clients seeking maximum social impact with market returns. Impact Shares’ goal is to build a capital markets bridge between leading nonprofits, investors and corporate America to direct capital and social engagement on societal priorities. Impact Shares is a tax-exempt non-profit organization under Section 501(c)(3) of the Internal Revenue Code. For more information about Impact Shares, visit impactetfs.org.
About Climate Vault
Climate Vault is a Carbon Disclosure Project (CDP)-accredited 501(c)(3) climate solutions start-up founded at the University of Chicago by former senior White House economic advisor Michael Greenstone and prominent business leaders. Climate Vault delivers the world’s first verifiable, integrated carbon reduction and removal solution, providing a fast, easy and credible way for organizations and individuals to achieve carbon neutrality. Our market-based solution is focused on immediately reducing carbon footprints by purchasing allowances from highly-regulated compliance carbon markets and ultimately converting those allowances into funding for cutting-edge carbon dioxide removal (CDR) tech that will remove carbon emissions from the atmosphere, forever. Climate Vault’s CDR initiative is backed by a “Technology Chamber” composed of leading climate science experts, including former U.S. Secretary of Energy, Ernie Moniz. Since our launch in 2021, we’ve been named to Fast Company’s list of “World Changing Ideas,” and reduced ¾ million tons of CO2 for our partners, the equivalent of preventing 72,000 passenger cars from driving around the Earth. Leading brands such as T. Rowe Price, Vanderbilt University, TPG, Morningstar, Gemini and Danfoss trust Climate Vault to build tailored carbon programs that deliver quantifiable results and enduring impact. Visit www.climatevault.org to learn more, calculate your individual footprint, and help your organization or financial portfolio reach carbon neutrality.
Carefully consider the Fund’s investment objective, risk factors, and expenses before investing. This and additional information can be found in the Impact Shares statutory and summary prospectus, which may be obtained by calling 844-448-3383, or by visiting ImpactETFs.org. Read the prospectus carefully before investing.
Investing involves risk, including the possible loss of principal. Narrowly focused investments and investments in smaller companies typically exhibit higher volatility. Investments in commodities are subject to higher volatility than more traditional investments. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund’s gains or losses. The Fund is non-diversified.
Shares of any ETF are bought and sold at market price (not NAV) may trade at a discount or premium to NAV and are not traditionally redeemed from the Fund. Brokerage commissions will reduce returns.
SDGA is distributed by SEI Investments Distribution Co, which is not affiliated with Impact Shares or Climate Vault.
United Nations Capital Development Fund does not endorse and/or recommend any commercial or other products including financial products, goods, or services.
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