Women’s growing share of wealth, together with their increasing influence in the asset management industry, will spur ever more investment into environmental, social and governance (ESG) funds worldwide over the next decade, according to iClima Earth, which is behind the iClima Global Decarbonisation Enablers UCITS ETF (LON:CLMA).
Academic research shows women are more concerned about ESG issues and iClima Earth says they will play a key role in directing more investment into sustainable investments.
Research, as published in Professor Mauro Guillen’s book, ‘2030 – How today’s biggest trends will collide and reshape the future of everything’, points to women accumulating wealth faster than men. For example, in the US, women now receive most undergraduate and graduate degrees, more than 40% of married mothers earn more than their husbands and about 70% of mothers work full time outside of the home.
Other research shows that more women than men are interested in sustainable investing, positive social impact investments and climate change.
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“We have never been so close to a scenario where women are co-ruling the world,” says Gabriela Herculano, CEO of iClima Earth.
“Gender equality may not be the norm even by 2030, but as women control more wealth it is likely that they will steer the debate towards areas that concern them, such as education, healthcare and sustainability.”
“Women are much more interested in making an impact with their investments and if they control half of the market for investments by 2030 it is highly likely that they will demand more ESG investment products.”
She also pointed to the growing presence of female professionals in the ETF industry, as demonstrated by the growth in membership of Women in ETF not-for-profit organisation that has grown to over 5,600 members since being founded in 2014, as well as notable industry leaders such as Catherine Wood, founder, CEO and CIO of Ark Investment Management.
“If more women are to be in investment management – ETFs and beyond – it is also likely that a lot of supply and innovation in sustainable financial products will be created and delivered by women,” Herculano added.
The exchange-traded fund (ETF), which iClima Earth launched in December using the HANetf platform, is the world’s first ESG ETF that provides exposure to companies offering products and services that enable CO2e avoidance solutions and quantify that impact.
The iClima Global Decarbonisation Enablers ETF, which was listed in London and on Deutsche Boerse’s Xetra and Borsa Italiana, tracks the iClima Global Decarbonisation Enablers Index, which is up 95.39% over the last 12 months.
The index was built using a tiered approach, meaning there is no over-exposure to large cap companies and it provides a balanced exposure to the key climate change solutions.
Exchange traded funds (ETFs) account for a substantial and growing share of ESG investments, seeing their largest ever inflows in 2020.
The iClima Global Decarbonisation Enablers UCITS ETF has a total expense ratio of 0.65% and tracks the iClima Global Decarbonisation Enablers Index.
Herculano’s iClima Earth is a green fintech that creates investment products targeting companies that make impactful contributions to solving climate change.