ACA’s ESG Data & Analytics Solution Certifies First Plant-Based ETF as Carbon Neutral
VegTech™ Invest’s Plant-Based Innovation & Climate ETF is recognized as the first plant-based innovation solution to meet ACA’s rigorous carbon neutrality certification
New York, NY, November 16, 2022 – ACA Group (ACA), the leading provider of governance, risk, and compliance (GRC) solutions to clients in the financial services industry, today announced that their ESG Data & Analytics solution has certified an exchange-traded fund (ETF) as carbon neutral under its plant-based innovation certification.
VegTech™ Invest’s Plant-based Innovation & Climate ETF, EATV (NYSE: EATV), is the first ETF that ACA has certified as carbon neutral based on the positive impact of replacing animal products with plant-based innovation solutions for a more resource-efficient and less damaging food and materials supply system.
ACA’s carbon neutral certification is designed for mutual funds, ETFs, separately managed accounts (SMAs), portfolios, and other investment products to help meet growing market demand for assessments of innovations that are intended to reduce emissions and support ESG and impact goals.
As part of the certification to identify emissions reduction potential, ACA 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 a plant-based industry.
ACA 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, ACA 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 when considering the expected emissions avoided.
“New investment approaches such as EATV are seeking groundbreaking solutions that address the global food and material supply system that work toward stabilizing food insecurity and reducing greenhouse gas emissions,” said Luke Wilcox, partner at ACA Group and founder of Ethos ESG. “We are proud to highlight ACA’s expanded offerings in certifying the fund as carbon neutral.”
“Our factory-animal food supply system causes tremendous damage to the planet through deforestation and its emissions, most notably producing about one third of the world’s methane according to the EPA,” said Elysabeth Alfano, CEO of VegTech™ Invest. “It also uses a disproportionate amount of critical resources, such as land and water, needed for a growing global population. We won’t sufficiently impact climate change in the short time needed if we don’t innovate for solutions to animal factories. That’s why we created EATV. We want to drive capital to the companies who are innovating to replace animal products for sustainable consumption and allow investors to partake in the megatrend of creating an efficient, global food supply system.”
To learn more about ACA’s Carbon Neutral Certification Solutions, visit the website.
U.S. – BackBay Communications
About 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.
For more information, visit www.acaglobal.com
About VegTech™ Invest
VegTech™ Invest™ advises the VegTech™ Plant-based Innovation & Climate ETF, (EATV.) EATV invests in companies actively innovating with plants and plant-derived ingredients to create animal-free products for sustainable consumption. The ETF provides exposure to the growing plant-based trend.
The firm is also the provider, along with Morningstar, of the VegTech™ Plant-based Innovation & Alternative Proteins Index, a global benchmark that defines and leads the disruptive plant-based innovation and alternative protein investment sector in the public markets.
Exchange Traded Funds (ETF) are bought and sold through exchange trading at market price (not NAV) and are not individually redeemed from the fund. Shares may trade at a premium or discount to their NAV in the secondary market. Brokerage commissions will reduce returns.
The fund’s investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus (if available) contains this and other important information about the investment company, and it may be obtained by calling 1-424-237-8393, emailing email@example.com 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’s policy of investing in VegTech companies to promote environmental change and its view on climate change issues could cause the Fund to perform differently compared to similar funds that do not have such a policy. This policy may result in the Fund foregoing opportunities to buy or sell certain securities. The Fund is actively managed and relies on an adviser for choosing investments and to make portfolio allocation decisions for the Fund as opposed to tracking an index. Foreign and emerging market securities may be more volatile and less liquid than domestic U.S. or developed countries securities due to currency fluctuations, economic and market conditions, and differing government policies. Stocks of companies with small to mid-capitalizations as well as IPOs (initial public offerings) may be unseasoned with a limited amount information and availability of shares are subject to a higher degree of risk and less liquidity. The Fund is non-diversified, which means that a large portion of the Fund’s assets may be invested in the securities of a single issuer or sector. A negative event could more adversely affect the value of the fund than a more diversified fund.
Quasar Distributors, LLC, distributor 2022.
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.
About the Carbon Neutral Certification:
ACA’s ESG Data & Analytics Team performs an independent analysis of a fund’s carbon footprint and carbon credits (offsets) to verify whether the fund is carbon neutral during a specified period. The period is typically quarterly based on the previous quarter. The carbon footprint consists of verified Scope 1, Scope 2, and (where possible) Scope 3 emissions of every holding of the fund. ACA defines the carbon footprint of a fund as the total tons of Scope 1, Scope 2, and (where possible) Scope 3 CO2 emissions of its holdings multiplied by the fund’s percentage ownership of those holdings. Percentage ownership is based on the market value of the fund’s shares divided by the total market value of the holdings, averaging over the course of the specified period. Scope 3 emissions are included based on an assessment of the quality of reported Scope 3 data. Limitations of Scope 3 data include lack of standardized reporting methodology by companies; low coverage of companies reporting Scope 3 emissions; and likely overlap of Scope 3 emissions across company value chains. ACA discloses in each certification whether Scope 3 emissions are used. As part of the Carbon Neutral Certification, ACA requires funds to submit proof of purchase of carbon credits from a list of approved providers of carbon credits (if the fund wishes to use carbon credits as part of the carbon neutral analysis). When Scope 1, Scope 2, and Scope 3 emissions information is not available the following modeling formula used is: Expected emissions = peer-average carbon intensity (CO2 per $M revenue) * $M revenue. ACA audits this estimation and will address discrepancies should they arise. Emissions data is limited by the voluntary disclosure by individual companies and is not independently audited. VegTech™ Invest and ACA make every effort to ensure data is accurate but cannot guarantee absolute carbon neutrality.
The most recent certification was completed on October 13, 2022. More information is available online from ethosesg.com/carbon-neutral-certification.