Leading Swiss online trading firm Swissquote has expanded its Themes Trading offering via the addition of a Decarbonisation theme.
Let’s recall that this one of the vote options in a poll Swissquote launched in July, as it sought traders’ feedback on potential new themes.
The global transition to a low carbon economy is the megatrend of the 21st century, the company explains. Support is evident at all levels, from global strategies right down to the individual’s buying power. Increasingly, consumer preferences are contributing to the seismic shift via vegetarianism, ridesharing and a preference for electric vehicles.
The Paris Agreement, a legally binding international treaty developed in 2015, aims at addressing the negative impacts of climate change through the decarbonisation of the economy. The goal is to keep the global temperature below 2 degrees Celsius above pre-industrial levels. More than 189 countries support the Paris Agreement, and are spurring on change with supportive regulatory changes tailored to their varying statuses.
The focus of the Decarbonisation Certificate is on companies that directly enable carbon avoidance through their products and services. This offers a point of difference to other ESG or climate change products that invest in companies concentrated on reducing their own carbon footprint.
Energy, transport, agriculture, industry and buildings are currently the primary sources of global greenhouse gas emissions. Included in this theme are companies from these sectors that contribute to:
- generating low-carbon electricity
- improving the energy-efficiency of building
- electrifying transportation
- developing sustainable public transport systems
- reducing animal product consumption, and
- widespread use of sustainable construction materials.
The theme will create sustainable value for investors in the long term, helping them to reach financial and investment goals via a bold new asset class.
Themes Trading is Swissquote’s collection of dynamic thematic portfolios, which means that traders do not buy individual stocks but assortments of stocks. Investors opting for this thematic investment are looking at what lies ahead and can therefore position their portfolio for faster growth and higher returns.
Swissquote introduced Themes Trading in September 2015. Back then, the service offered an initial set of 30 diverse themes, including global electric, cyber security, Greek recovery and fitness trends. The service offers investors to find opportunities in thematic investing, coupled with the highest possible transparency.
The most recent additions to the Themes Trading include Swiss Bliss, as well as Inflation Trade.