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Scotia gets into climate change investing


O Canada: country of contrasts. On the down side, Due South and seal clubbing. On the up side, Trailer Park Boys and the country’s very first climate change fund.

The latter was announced this week by Scotia Securities, “designed for investors looking for exposure to environmentally responsible companies,without compromising solid returns”. Greenbang wonders how many people will be willing to expose themselves in a Canadian winter but there you go. Here’s more on the fund, while Greenbang ponders.

The fund diversifies across nine climate themes that cover 10 economic
sectors, enabling the fund to capitalize on a broad scope of opportunities
while reducing the risk associated with investments in only one or two of
these areas. The nine climate themes are:
– Clean Fuels – Technologies that allow for lower greenhouse gas (emissions and have less environmental impact than fossil fuel sources. For example, ethanol, methane, liquefied natural gas biodiesel fuel.
– Clean Technology and Efficiency – Technologies used to create and emit little to no waste or that use their by-products to other forms of energy. For example, carbon capture and storage Integrated Gasification Combined Cycles (IGCC).
– Efficient Transport – Technologies that enable greater efficiency and lower GHG emissions for all types of transport.
– Environmental Finance – Companies which are developing global carbon market infrastructure, for both voluntary and regulated markets. For example carbon trading companies, insurance companies, securities exchanges, direct carbon project sponsors such as clean development mechanism and joint implementation initiatives, and environmental lenders.
– Power Technology – Technologies that improve the efficiency of power production, distribution and storage.
– Power Merchants and Generation – Utilities that have base-load power generation with low GHG emissions. For example renewable energy sources such as wind and solar energy or nuclear power.
– Renewable Energy – Electrical power generation using natural resources such as sunlight, wind, tides and geothermal heat which are naturally replenished.
– Sustainable Living – Leveraging consumer trends such as retail franchises that have best practices with regard to environmental sustainability. This theme assesses and leverages growth trends that limit GHG emissions, and supports companies that apply best practices with regard to business strategies that limit environmental impacts.
– Water – Investing in companies who have strong water conservation policies or companies which specialize in water treatment, water purification or desalination as well as water utilities.
Bill Page, Vice-President and Head of ESG Investments, State Street Global Advisors said: “The trend toward more strict environmental regulations gives this
fund sustainability because companies taking steps to reduce their ecological footprint now will be less impacted by future regulations.”

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