Sustainability is a key priority for us a Milltrust and nowhere is this truer than in the realms of climate change where the imperative to tackle global warming through the adoption of new and sustainable technologies has become critical.
It’s the final call to save the world from climate catastrophe. Whilst the challenges are high, keeping warming below 1.5°C by the end of the century is still feasible according to the IPCC. However, with every decade lost, these challenges rise and will, at some point, become insurmountable with warming locked into 2°C and above.
The Asia-Pacific region is responsible for almost half of global carbon dioxide emissions and is the region most exposed to climate risks. But the region also houses significant opportunity to invest in world-leading companies working on climate impact solutions
The Time to Act is Now
The Climate Impact Asia Fund (CIAF) is managed in partnership with Milltrust International and Environmental Investment Services Asia Limited (EISAL), and with the invaluable collaboration of WWF-Hong Kong who serves as the environmental consultant to the fund and is a key member of the Investment Advisory Committee, monitoring the fund’s climate objectives, providing environmental expertise and deep knowledge on climate policies, and providing access to a global network of contacts from academia, industry, government, and civil society to enhance the fund’s impact.
The Climate Impact Asia Fund is a long-only, liquid, equity impact fund, regulated by the Central Bank of Ireland, that invests in the leading Asia Pacific-listed companies making a positive impact against climate change.
In addition to its objective of maximising shareholder returns, and to further its environmental mandate, the CIAF also makes revenue-based donations to support WWF-HK’s local and Asian regional conservation programmes. These programmes are in line with the United Nations Sustainable Development Goals and have a particular focus on SDGs 14 and 15, namely Life Below Water and Life on Land.
Renewable energy capacity in Asia continues to grow steadily, in particular in China and India. China’s renewable generation capacity grew from 480 GW in 2015 to just under 700 GW in 2018.
China has installed the largest waste to energy capacity of any country globally, now equivalent to 40% of all OECD countries combined, and growing. Other countries in Asia are developing similar environmental services.
China and India have ambitious targets to decrease the carbon intensity of their national energy mixes, while still securing a reliable supply of energy. Alternative energy including gas provides a transitionary solution away from coal.
* Developing markets only.
China has proposed ambitious plans to promote smarter energy use in urban cities, requiring that 50% of all new urban buildings be “certified green buildings”, increasing the energy efficiency opportunities in the region.
Asia is currently home to 4.5 billion people, who use ~ 65% of the world’s water supply. An estimated 30% of Asia's population is already facing water scarcity with demand for water expected to increase exponentially.
China dominates the market for EVs. Roughly a million electric vehicles were sold in 2018—more than the rest of the world combined. In 2019 the government upped its goal for “new energy vehicles” to 25% of new car sales by 2025.
China is only beginning in its projected endeavors to "Establish a Green Financial System” which has become an official mandate from the Central Party Committee and State Council. Today, Green bonds issued domestically have reached 205.2 billion RMB (USD32.4 billion), making China the world’s largest issuer of green bonds, at 40% of bonds issued globally.
As climate change and other environmental issues become a growing concern for Asian consumers, sustainable products are now more popular in the region than ever before. In 2017, the total volume of green purchases made at leading Chinese e-commerce retailers increased by 71 per cent with almost half of the sales made by millennials aged 26 to 35.
The CIAF actively seeks to maximize its alignment to the UN Sustainable Development Goals (SDGs), which were adopted by all United Nations Member States in 2015 as a universal call to action to end poverty, protect the planet and ensure that all people enjoy peace and prosperity by 2030. Achieving the SDGs requires the partnership of governments, private sector, civil society and citizens alike to make sure we leave a better planet for future generations. CIAF’s primary SDG alignment focus is on:
Take urgent action to combat climate change and its impacts.
Ensure access to affordable, reliable, sustainable and modern energy for all.
Safe and affordable drinking water for all by 2030 requires we invest in adequate infrastructure, provide sanitation facilities, and encourage hygiene.
Conserve and sustainably use the oceans, seas and marine resources for sustainable development.
Make cities and human settlements inclusive, safe, resilient and sustainable.
Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.
Environmental Investment Services Asia Limited (EISAL) is the investment manager of the Climate Impact Asia fund. EISAL is a Hong Kong-domiciled specialist environmental investment management company, founded by Jeremy Higgs in 2009. The firm comprises a team of 3 investment professionals with combined investment experience of over 60 years. In 2018, Hong Kong-listed corporate financial services group Somerley Capital Holdings Ltd became EISAL’s majority shareholder.
EISAL is licensed by the HK SFC and is also authorised by the Central Bank of Ireland to provide investment management services to Irish funds. EISAL is a signatory of the UN PRI and Founding Member of the Hong Kong Green Finance Association.
The World Wide Fund for Nature (WWF) is an independent conservation organization, with over 30 million followers and a global network active in nearly 100 countries. WWF’s mission is to stop the degradation of the Earth’s natural environment and to build a future in which humans live in harmony with nature, by conserving the world’s biological diversity, ensuring that the use of renewable nature resources is sustainable, and promoting the reduction of pollution and wasteful consumption.
WWF-Hong Kong, established in 1981, maintains a vision to transform the territory into Asia’s most sustainable city. WWF-Hong Kong’s Environmental Finance team drives economically viable solutions for climate, species, and habitats.
|Platform:||Milltrust International Managed Investments ICAV|
|Investment Manager:||Environmental Investment Services Asia Limited|
|Investment Adviser:||Milltrust International LLP|
|Environmental Consultant:||WWF-Hong Kong|
|Structure:||Open-ended Investment Company|
|Strategy:||Long biased Asian equities with focus on Climate Impact investments|
|Inception Date:||03 January 2020|
|Share Classes:||Class (A), Class (B)|
|Min. Initial Investment:||USD 1m (A), USD 125,000 (B)|
|Management Fee:||1.25% (A), 1.75% (B)|
|Notice Period:||10 business days|
|Penalty:||5% < 6 Months|
|ISIN Code:||IE00BJQWRY50 (A), IE00BJQWRZ67 (B)|
|Bloomberg Code:||CIAFXXA ID|
|Investor Types:||For Professional and Accredited Investors Only|
|Registered for Distribution in:||Ireland, United Kingdom, Hong Kong & Singapore|
|Administrator:||MUFG Alternative Fund Services (Ireland) Ltd.|
|Custodian:||Mitsubishi UFJ Investor Services & Banking (Luxembourg) S.A.|
CLASS: Class A
CLASS: Class B