Solactive announced the acquisition of a minority stake in Spark Change.
Inflows in ESG linked investments are at their all-time peak, and more investors are well-disposed towards integrating ESG factors into the investment process. At the same time, product providers’ and institutions‘ ESG requirements are many-faceted, and one-size-fits-all solutions are simply non-existent. To facilitate investors and institutions in finding bespoke ESG solutions that fit their needs, Spark Change developed their technology platform to create a new class of green financial instruments, enabling investors to develop their own innovative ESG solutions.
Initially, Spark Change aims to broaden access to the previously hard-to-reach carbon emissions market by providing exposure to the value of physical carbon emissions allowances through green financial products.
Beyond facilitating investment, Spark Change’s solution makes it easier to blend exposure to carbon pricing into portfolios, thus opening up new ways to hedge carbon price risk and meet ESG goals while leaving higher allocative freedom compared to traditional ESG screening approaches.
Solactive‘s investment recognizes the disruptive access Spark Change creates as well as its direct applicability in Solactive’s solutions. The investment was part of a $4.5m funding round led by Barclays and included FinLab AG, one of Germany’s largest FinTech-focused VCs.
„Previously, access to the carbon emissions markets worldwide was highly restricted,“
states Steffen Scheuble, CEO of Solactive.
„Spark Change expands the boundaries of green investing, allowing investors to act in this increasingly important field of sustainable finance. Solactive’s mission matches well with the disruptive attitude of Spark Change, and we are looking forward to providing our clients with new and innovative ways to build their ESG product suites.”
Joff Hamilton-Dick, CEO at Spark Change, comments:
“We’re delighted such a forward-thinking company like Solactive shares our values of environmental stewardship and financial innovation. The growing demand from institutions seeking innovation in the ESG space illustrates we’ve struck a chord that resonates around the world. We believe that market-driven pressures combined with our platform can directly impact the price of carbon and help have a greater impact.”