EATV is the First ETF Certified by Ethos ESG as Carbon Neutral Without Buying Credits
Although not sequestering carbon, Ethos determined that the aggregate carbon avoidance potential of all EATV holdings was greater than the estimated carbon footprint -- i.e., an investment in EATV may result in a net reduction of carbon (AKA Carbon Negative), when considering the expected emissions avoided.
An investment in EATV, the world's only Plant-based Innovation & Climate ETF, may result in reducing the carbon footprint of one's overall portfolio when considering the expected emissions avoided.
LOS ANGELES, Jan. 17, 2023 /PRNewswire/ -- The VegTech™ Plant-based Innovation & Climate ETF, EATV (NYSE: EATV) has received ground-breaking certification from Ethos ESG: Carbon Neutral Without Buying Credits, a first according to the certification company.
While most Ethos' Carbon Neutral Certifications compare the carbon footprint of a portfolio with purchased offsets, the Plant-based Innovation Certification championed by EATV considers carbon emissions avoided by replacing animal products for a less carbon intensive food and materials supply system. This means that the investments made by EATV are actually helping to solve the problem – i.e., avoiding creating emissions – rather than using the band-aid of offsets.
"Offsets are really important for mitigating global warming, but it is also critical that we address the underlying problem, including the massive emissions generated by our meat-based food system," notes Luke Wilcox, ACA Group Partner and Founder of Ethos ESG. According to the United Nations, "offsets are not a long-term solution.1"
Although not sequestering carbon, Ethos determined that the aggregate carbon avoidance potential of all EATV holdings was greater than the estimated carbon footprint -- i.e., an investment in EATV may result in a net reduction of carbon (AKA Carbon Negative), when considering the expected emissions avoided.
"The emissions avoidance thesis through replacements of carbon-heavy animal products has always been at the core of EATV's philosophy. We have always believed that avoiding emissions can be even more impactful than participating in a carbon market, which can have intermediaries, and be complicated and inefficient." says Dr. Sasha Goodman, Fund Manager of EATV. "We are happy to confirm our thesis through certification by a reputable third party, Ethos ESG."
"I'm excited to highlight the impact potential of switching to plant-based products through our certification of the EATV ETF," says Wilcox. "From an emissions reduction perspective, the plant-based protein sector may be one of the most accessible and impactful areas in the market." An independent BCG report confirms this2.
Portfolio Construction For Upside & Climate Change: 1.18C
Ethos ESG notes that EATV has a global temperature warming potential of 1.18C (Celsius), far below the UN goal of 1.5C and very far below the S&P 500 warming potential of 3.2C.
With its supply chain focused portfolio construction designed to help address the overarching food systems problems, the EATV Plant-based Innovation & Climate ETF is leading the way for a more aggressive approach in helping to solve Climate Change by avoiding emissions in the first place.
Further, an investment in EATV could bring down the carbon footprint of an asset manager's or individuals' overall portfolio.
"With EATV, VegTech™ Invest offers a distinct strategy that seeks to capitalize on the new food revolution paradigm of Plant-based Innovation and Alternative Proteins. EATV's investment approach seeks groundbreaking solutions that address the global food and material supply systems and works toward stabilizing food insecurity and reducing Greenhouse Gas Emissions. Ethos is proud to partner with VegTech™ Invest as we take actionable steps toward a net-zero economy," says Ethos' Dan Carreno.
To view the Statement of Certification, click here.
Source: Ethos ESG
GET YOUR PORTFOLIO IN CLIMATE SHAPE WITH EATV
EATV is available on Fidelity, Schwab, TD Ameritrade, eTrade, Vanguard, Pershing, and more.
For the webinar on Carbon Neutrality Without Buying Credits, featuring CEO of VegTech™ Invest, Elysabeth Alfano, EATV Fund Manager Dr. Sasha Goodman and the Founder of Ethos ESG Founder, Luke Wilcox, click here.
The webinar is Wednesday, January 18 at 1:30p ET and takes place, like all of the VegTech™ Invest webinars on the first and third Wednesdays at this time, live on the VegTech™ Invest Linkedin Page.
Groundbreaking Certification & Methodology: Carbon Neutral Without Buying Credits.
The fund EATV was carbon neutral during the third and fourth quarters of 2022, based on data provided by VegTech™ Invest and an independent assessment conducted by Ethos Impact Inc. ("Ethos ESG").
In order to identify emissions reduction potential, Ethos reviewed a variety of lifecycle analyses (assessments of the carbon footprint of a product over its entire "lifecycle") from the University of Michigan, Boston Consulting Group, and others. These analyses quantify the typical emissions reduction associated with converting from beef to plant-based meat, implementing green vertical farming, investing in plant-based products and innovations, and making other transitions to plant-based industry.
Ethos compared the estimated carbon footprint of the holdings in EATV (the Scope 1, 2 and 3 emissions that EATV is responsible for through its investment in each holding) with the expected impact of emissions that are avoided for each holding. Based on this analysis, Ethos determined that the aggregate carbon avoidance potential of all EATV holdings was greater than the estimated carbon footprint -- i.e., an investment in EATV results in a net reduction of carbon (AKA Carbon Negative), when considering the expected emissions avoided.
The certification is not intended to indicate "absolute" zero emissions, but rather the relative impact when compared to meat and other alternatives.
VegTech™ Invest
VegTech™ Invest advises the VegTech™ Plant-based Innovation & Climate ETF, (EATV), which launched December 28, 2021. EATV invests in companies along the supply chain actively innovating with plants and plant-derived ingredients to create animal-free products for sustainable consumption to address climate change, food insecurity and a more efficient food supply system.
VegTech™ Invest has created and is leading a completely new impact asset class in the capital markets: Plant-based Innovation & Alternative Proteins. The ETF provides exposure to the growing trend.
The firm provides the VegTech™ Plant-based Innovation & Alternative Proteins Index, calculated and distributed by Morningstar, as a global benchmark that defines this new sector.
The EATV top ten constituents as of 1/3/23 are Ingredion, Sensient, Givaudan, Dole, Yara, Smurfit, MGP Ingredients, ABinBev, E.L.F Beauty Inc., and Vitasoy International. Amyris Inc, Beyond Meat, Oatly and Gingko BioWorks are also in the fund*.
Pictures/Logos here. LinkedIn/Twitter. *Holdings subject to change. Visit www.EATVetf.com.
Ethos ESG, ACA's ESG Data & Analytics Solution
ACA Group ("ACA") is the leading governance, risk, and compliance (GRC) advisor in financial services. We empower clients to reimagine GRC and protect and grow their business. Our ESG Data & Analytics tool provides data and analytics for financial advisors, asset managers, institutions, and investors. With over 350,000 impact ratings of stocks and funds across 45 causes, our interactive platform helps firms offer robust impact reporting, monitor, and address sustainability risks, and enhance quantitative research and modelling with transparent ESG data.
The fund's investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus and summary prospectus contain this and other important information about the investment company. It may be obtained by calling 1-424-237-8393, emailing [email protected] or visiting EATV.VegTechInvest.com. Read it carefully before investing.
Investing involves risk including the possible loss of principal. Past performance does not guarantee future results.
The fund is an actively managed ETF that does not seek to replicate the performance of a specified index.
Foreign securities may be more volatile and less liquid than domestic (U.S.) securities, which could affect the Fund's investments.
Stocks of companies with small and mid-market capitalizations involve a higher degree of risk than investments in the broad-based equities market.
ESG investing is defined as utilizing environmental, social and governance (ESG) criteria as a set of standards for a company's operations that socially conscious investors use to screen potential investments. The Fund's policy of investing in companies as a means to promote positive climate change could cause the Fund to perform differently compared to similar funds that do not have such a policy.
EATV is distributed by Quasar Distributors, LLC.
Quasar is a subsidiary of the group of companies doing business as ACA Group and is an affiliate of Ethos ESG. Neither Quasar, nor any of its directors, officers, or staff, are involved in Ethos ESG's certification process or pay for accreditation, nor does Ethos ESG consider affiliation as part of its certification analysis.
[1] "A Beginner's Guide to Climate Neutrality." 1.5 degrees., A climate action blog, United Nations Climate Change, February 26, 2021.
[2] Morach, Benjamin, et al. "The Untapped Climate Opportunity in Alternative Proteins: Food for Thought." Boston Consulting Group, July 8, 2022.
Contact: [email protected]
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