PORTLAND — What do oil, coffee and greenhouse gases have in common? These are all commodities that can be traded on the New York Stock Exchange. Carbon credits, the credits needed to emit carbon and other greenhouse gases, are one of the newest ways for investors to align their commitment to fighting climate change with their portfolio.
Portland-based Spinnaker Trust has long been at the forefront of climate-conscious investing and now offers carbon credit investing through KraneShares Global Carbon ETF (NYSE: KRBN). Launched in July 2020, the KRBN ETF has since grown to over $1 billion in assets under management. “Climate change is a daily headline, and it has become a priority for our investors,” says Eben Jose, CFA, Vice President and Head of Alternatives and Fixed Income at Spinnaker Trust. “There is an urgency in our society to take responsibility for our planet and to actively seek out opportunities where individuals can have a positive impact on our environment. Carbon credits are an effective tool used by governments around the world to reduce emissions and encourage investment in green technologies.
Carbon credits and investments are part of a broader divestment movement, which aims to take money and public approval away from banks and financial institutions that invest in extractive industries. Unity College was the first college in the nation to divest its assets to companies with deep carbon reserves, through a Fossil Fuel Free Portfolio (“FFF”) developed by Spinnaker Trust nine years ago.
“Investing in carbon credit is different from adopting an FFF,” explains Jose. “It’s just a newly available item that one can add without adopting a full portfolio philosophy. In addition to its potential diversification benefits, it is also a simple and effective way to facilitate meaningful change.
Once a relatively new and underrepresented concept, FFF has grown exponentially, and the investment industry has followed suit, with environmental, social and governance (ESG) concerns now at the forefront of investor priorities. . The success of the FFF has created greater demand for investments that offer both the possibility of long-term competitive returns and the fight against climate change. Today, Spinnaker Trust responds to this need by investing in carbon credits.
Spinnaker Trust is an employee-owned Maine bank licensed as a non-custodial trust company that manages over $2.5 billion for a global clientele. Spinnaker provides a wide range of financial services, including investment management, trust and estate planning, and tax services. Spinnaker brings technical expertise, broad knowledge and integrity of judgment, while embracing new technologies to enhance the customer experience. Founded in 2000, Spinnaker guides its clients towards their investment goals, helps them manage and grow their assets, and works hard to ensure their legacy is ready and waiting for future generations. For more information, visit http://www.spinnakertrust.com.