Without Buying Offsets, the EATV ETF Earns Carbon Neutral Status

The VegTech plant-based Innovation & Climate ETF, EATV, is now certified carbon neutral — a feat it achieved without buying offsets.

EATV (NYSE: EATV) says its carbon-neutral status comes by way of avoiding animal products in food and materials supply systems. “This means that the investments made by EATV are actually helping to solve the problem – i.e., avoiding creating emissions – rather than using the Band-Aid of offsets,” reads a press release issued by the platform. EATV received its certification from Ethos ESG.

Plant-based potential

“Offsets are really important for mitigating global warming, but it is also critical that we address the underlying problem, including the massive emissions generated by our meat-based food system,” said Luke Wilcox, ACA Group Partner and Founder of Ethos ESG. The United Nations says offsets are not a long-term solution in fighting the climate crisis.

“I’m excited to highlight the impact potential of switching to plant-based products through our certification of the EATV ETF,” says Wilcox. “From an emissions reduction perspective, the plant-based protein sector may be one of the most accessible and impactful areas in the market.“ 

EATV’s aggregate carbon avoidance potential was deemed greater than its estimated footprint, making an investment in the fund equal to a net reduction in carbon, the platform says. EATV’s global temperature warming potential of 1.18°C is below the U.N.’s goal of 1.5°C and “very far below” the S&P 500 warming potential of 3.2°C, the platform said.

LCAs on the impact of switching from beef to plant-based alternatives, along with other sector innovations, compared the carbon footprints of EATV’s holdings including Scopes 1, 2, and 3 emissions and the expected impact of emissions avoided. Its holdings include Ingredion, Sensient, Givaudan, Dole, Yara, Smurfit, MGP Ingredients, ABinBev, E.L.F Beauty Inc., and Vitasoy International. Also in the fund are Amyris Inc, Beyond Meat, Oatly, and Gingko BioWorks.

Emissions avoidance

The EATV Plant-based Innovation & Climate ETF is “leading the way for a more aggressive approach in helping to solve climate change by avoiding emissions in the first place,” read the press release.

“The emissions avoidance thesis through replacements of carbon-heavy animal products has always been at the core of EATV’s philosophy,” said Dr. Sasha Goodman, Fund Manager of EATV. “We have always believed that avoiding emissions can be even more impactful than participating in a carbon market, which can have intermediaries, and be complicated and inefficient. We are happy to confirm our thesis through certification by a reputable third party, Ethos ESG.”

According to Dan Carreno, Director of Business Development at Ethos, the EATV VegTech Invest investment approach “seeks groundbreaking solutions” aimed at addressing the global food and materials supply systems.

“With EATV, VegTech Invest offers a distinct strategy that seeks to capitalize on the new food revolution paradigm of Plant-based Innovation and Alternative Proteins,” he said. “Ethos is proud to partner with VegTech Invest as we take actionable steps toward a net-zero economy.”