Artesian celebrating the launch of the Carbon Collective Short Duration Green Bond Fund in Times Square, New York. From Left: Christine Chang, John McCartney, Vicky Lay, and Kurt Tan.
From Left: Breene Murphy, Kurt Tan, Christine Chang, Zach Stein, Vicky Lay and John McCartney.
Artesian celebrating the launch of the Carbon Collective Short Duration Green Bond Fund in Times Square, New York. From Left: Christine Chang, John McCartney, Vicky Lay, and Kurt Tan.
From Left: Breene Murphy, Kurt Tan, Christine Chang, Zach Stein, Vicky Lay and John McCartney.
Artesian’s green and sustainable bond strategy has expanded to the US with the launch of the Carbon Collective Short Duration Green Bond ETF on the Nasdaq.
Artesian / Carbon Collective (NASDAQ:CCBS)
SYDNEY, NSW, AUSTRALIA, June 12, 2024 /EINPresswire.com/ -- Artesian’s green and sustainable bond strategy has expanded to the US with the launch of the Carbon Collective Short Duration Green Bond ETF on the Nasdaq.
The fixed income team’s original A$ Green and Sustainable Bond Fund, launched in September 2020 with support from cornerstone investor Future Super. Since then, it has also raised capital from other reputable investors such as a $50 million investment from the Australian Government-backed Clean Energy Finance Corporation – the world’s largest ‘green bank’.
Artesian has built on the innovation of the Australian product and included enhanced impact drivers in the design of the latest ETF, including adding a 400 metric tons of carbon abated per $1 million invested, or carbon yield, to the short-duration green-bond fund available to US investors.
"We believe that our Australian fund was one of the first short duration green bond funds globally," said John McCartney, Artesian Managing Partner and Co-Founder.
"Observing its considerable success within the Australian dollar market, we have now introduced a similar fund, managed with comparable rigour, to the more expansive United States dollar market."
The ETF was launched in partnership with climate investment advisory firm, Carbon Collective, with the goal of broadening access to a diverse and liquid portfolio of green and sustainable public fixed income assets, while targeting the preservation of capital.
"Green bonds are one of the only publicly available, liquid asset classes with a quantifiable impact down to the project level," John McCartney says. "When a corporation raises a green bond, the funds are kept segregated to only be used on green or sustainable projects. Each year, most green bond issuers publish a third-party audited sustainability report showing what projects the bond funds were used to fund."
It drives impact through steering capital towards sustainability improvements, this might include energy efficiency, the transition to renewable power, water management or climate change adaptation, all of which have the potential to contribute to the Net Zero by 2050 goal.
TAKING IMPACT TRANSPARENCY TO THE NEXT LEVEL
In the process of developing the foundational green and sustainable bond fund, the team at Artesian were struck by a frustrating lack of comparable and decision-useful data about the bonds they were analysing.
Individual issuers would publish information on the outcomes of their particular projects, but this data was rarely in a consistent format, and to satisfy the team’s approach they also had to assess the sustainability credentials of the issuer itself.
“Despite the extensive resources of major data providers like Bloomberg, S&P, and Moody’s, granular impact data at the bond level remains elusive. To deliver the detailed impact reports our investors expect, we recognised the need to develop this capability in-house,” explained David Gallagher, Artesian’s Head of Australian Fixed Income.
This led to the creation of the ‘carbon calculator dashboard’. Using a proprietary methodology, the team pulled together a broad set of disparate data and distilled the most valuable insights into a user-friendly dashboard. It allows investors to see the total carbon emissions avoided and a brief description of the projects funded by each bond in the portfolio.
“Artesian’s goal is to deliver market-leading returns, both financial and strategic, to our investors. Our proprietary carbon calculator also provides investors a level of transparency about the impact of the bond portfolio,” said Matthew Clunies-Ross, Managing Partner and Co-Founder.
The technology was implemented as part of the development of the green bond ETF, and now investors not only have access to real-time data on emissions avoided and contribution towards the SDGs, but they also have insights into the issuers’ broader sustainability performance.
“During the process of data collection and reporting, we might have several engagements with issuers. We see this process as an important part in holding issuers accountable to the impact the bond proceeds are generating over the life of the security,” said Kurt Tan, Managing Director in New York. “The dashboard was a global team effort with the teams in the US, Australia and Singapore working in concert to prove out the system amongst global green and sustainable bond issuers.”
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ABOUT ARTESIAN
Artesian is a global alternative investment management firm specializing in debt, venture capital and sustainable and impact investment strategies. With over $1 billion in assets under management, the firm has 8 locations globally and is a registered B Corp. Artesian was founded in 2004 by Jeremy Colless, Matthew Clunies-Ross and John McCartney.
For more information, visit https://www.artesianinvest.com/.
Vicky Lay
Artesian
+1 929-562-2492
vicky@artesianinvest.com
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