In order to fully neutralize the carbon footprint of their investments, the purchase of carbon credits remains the only practical way of completely offsetting the residual carbon emissions.
Carbon credits are generated for example by projects which reduce or help avoid CO2 levels in the atmosphere. Examples include forestry regeneration or replantation projects. When sufficient carbon credits are purchased the residual carbon emissions from the portfolio can be balanced out. The purchase of carbon credits incentivises market players to launch more projects which reduce CO2 levels further. We will make use of Voluntary Emission Reductions (VERs), an over-the-counter market for carbon credits.
We are introducing full carbon offsets in some mutual funds and / or provide specific share classes which have a full offset mechanism.