The Global Palladium Fund (GPF) has unveiled the world’s first carbon-neutral physically backed nickel ETC.
The ETC is able to claim carbon-neutrality as Nornickel has cut greenhouse gas emissions at all stages of the nickel production chain.
The GPF Carbon Neutral Nickel ETC (NIC0 AV) has been listed on Wiener Börse (also known as the Vienna Stock Exchange) with an expense ratio of 0.75%.
The ETC tracks the spot price of nickel with the underlying physical metal sourced primarily from Russian mining giant Norilsk Nickel (Nornickel), GPF’s sponsor and the world’s largest producer of palladium and refined nickel.
Nornickel, as well as other producers and metal suppliers to the ETC, have confirmed their compliance with the Sustainable Development Goals of the UN 2030 Agenda and other global initiatives in sustainable development and responsible mining.
The ETC is able to achieve its carbon-neutrality status, not from the purchase of carbon offsets but because Nornickel has cut greenhouse gas emissions at all stages of the nickel production chain from underground ore mining to processing and refining. International auditors EY and Sphera GmbH have accredited the carbon footprint of the underlying nickel.
Alexander Stoyanov, Chief Executive Officer of GPF, said: “This is yet another tangible benchmark achieved thanks to the commitment of Norilsk Nickel to emissions reduction so that we can bring the world’s first carbon-neutral nickel ETC to market. Investors can take advantage of low-cost access to nickel which has a fundamental role in the transition to clean energy in the knowledge it has been mined and produced responsibly.”
The ETC’s physical nickel holdings are stored in secure warehouses in Rotterdam. To strengthen investor security, GPF uses IBM’s Hyperledger Blockchain in the custody chain of the metal in addition to traditional custodian processes. Recording bar and cathode information on the blockchain provides clear ownership and an immutable custody chain for investors using the ETCs.
GPF offers a further six physically backed metal ETCs providing exposure to gold, silver, platinum, palladium, copper, and nickel (without carbon-neutrality). The ETCs are available on London Stock Exchange, Xetra, Borsa Italiana, and SIX Swiss Exchange.