PORTLAND — What do oil, coffee and greenhouse gases have in common? They’re 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 investors can align their commitment to combat climate change with their portfolio.
Portland-based Spinnaker Trust has long been at the forefront of climate-conscious investing and is now offering investment in carbon credits through KraneShares Global Carbon ETF (NYSE:KRBN). Launched in July 2020, the KRBN ETF has since grown to over a billion in assets under management. “Climate change is a daily headline, and it’s become top of mind for our investors,” says Eben Jose, CFA, vice president and director of Alternatives and Fixed Income of Spinnaker Trust. “There’s an urgency in our society to take accountability for our planet and to actively seek opportunities where individual people can make a positive impact on our environment. Carbon credits are an effective tool used by governments globally to reduce emissions and encourage investment in green technology.”
Carbon credits and investments are part of a larger divestment movement, which focuses on pulling 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 from companies with significant carbon reserves, through a Fossil Fuel Free Portfolio (“FFF”) that was developed by Spinnaker Trust nine years ago.
“Carbon credit investing is different than adopting an FFF,” explains Jose. “It’s just one, newly available piece one can add without adopting an entire portfolio philosophy. In addition to its potential diversification benefits, it’s also a simple and effective way to facilitate meaningful change.”
Once a relatively novel 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 investors’ priorities. The success of FFF has created more demand for investments that dually provide the opportunity for long-term competitive returns and address climate change. Today, Spinnaker Trust is meeting this need with an investment in carbon credits.
Spinnaker Trust is an employee-owned Maine bank chartered as a non-depository 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 in judgment, all while embracing new technology to improve the client experience. Founded in 2000, Spinnaker guides their clients toward their investment goals, helps them manage and grow their assets and works hard to ensure that their legacy is ready and waiting for future generations. For more information, visit http://www.spinnakertrust.com.