SAN FRANCISCO--(BUSINESS WIRE)--EMQQ today announced the concrete steps it is taking to create a sustainable organizational model and to advance the EMQQ team’s commitment to Environmental, Social and Governance (ESG) related issues; a plan the team has labelled “EMQQ EVOLVES.”
“The ESG movement has arrived. Real money is getting invested by real people who really want to do good for the world and its people. Unfortunately, the current system falls way short of actualizing these intentions,” said Kevin T. Carter, Founder + Chief Investment Officer of EMQQ. “Greenwashing around ESG is rampant, and corporate ESG platforms often fail to translate policies into real-world change. Further, the current ‘black box’ approach to ESG ratings is, in our opinion, a failure. As the world develops, we need to think about optimizing and advancing our rating systems to truly reflect the spirit of ESG around the world.”
Carter laid out plans for EMQQ EVOLVES:
- Educate the marketplace about where ESG ratings fall short. “Ratings providers have been pushed to produce ESG ratings and rankings at an industrial scale, leading to the adoption of ‘black box’ approaches that fail to provide an accurate and fair assessment of companies and the ETFs that hold them,” he continued. “Alibaba* and Tencent* do not have the same ESG impact that a state-owned oil company has, for example. Yet, they are scored in the same ESG cohort.”
- Control what he and his colleagues can control. “While we are early in the EMQQ story, it is a growth story, so where we can exert influence on the companies that constitute our underlying index, we will look to do so,” he added.
- Build the spirit of ESG into all operational aspects of EMQQ as a business. “In addition to looking at the ‘ESG-ness’ of our underlying holdings, we wanted to evolve the way our company operates so it serves as a vehicle to catalyze real progress on ESG issues in our industry and around the world.”
*As of 3/31/21 Alibaba makes up 8.04%, and Tencent makes up 7.98% of EMQQ
For that final point, the EMQQ team is today rolling out several initiatives, including:
ENVIRONMENT
- Solar capacity will be installed on EMQQ’s headquarters, with a goal of having a zero net energy status by 2022.
- All EMQQ employees will be provided with a Tesla after one year of employment.
- The company will be purchasing carbon credits to offset 100% of corporate air travel.
SOCIAL
- The company will remain committed to diversity among its team members and partners.
- There will continue to be no gender, racial or other bias in compensation practices.
GOVERNANCE
- EMQQ will vote on all proxies in accordance with accordance with the ESG Sustainability recommendations of Institutional Shareholder Services (ISS).
Additionally, EMQQ EVOLVES will include an Annual Giving Program to create support for organizations that are committed to advancing issues that reflect the EMQQ team’s beliefs and values. The 2021 EMQQ EVOLVES giving recipients will be announced Summer 2021. EMQQ welcomes suggestions from the public for organizations through May 15, 2021. Suggested organizations should be sent to Lee G. Stapleton, lstapleton@emqqindex.com. More information about the Program is available on www.EMQQetf.com.
The firm has appointed Lee G. Stapleton, EMQQ’s Chief Marketing Officer, as Chief Evolution Officer as well to oversee and drive accountability for the progress of the EMQQ EVOLVES program. “We are proud to share our plans as EMQQ EVOLVES aligns us with global efforts to advance ESG issues within the investment management industry,” said Ms. Stapleton. “We all need to be taking a look at how we can evolve as an industry right now, as a people, and as a planet. We can’t do everything, but we all should be doing something. EMQQ EVOLVES is a start on ESG, and by no means an end.” She continued, “We look forward to talking with investors, partners and our colleagues about how we can improve and advance ESG issues across the investment management industry. The best place for us to start was with ourselves.”
About EMQQ
The Emerging Markets Internet and Ecommerce ETF (EMQQ) seeks to track, before fees and expenses, the Emerging Markets Internet and Ecommerce Index. The index invests in companies with exposure to the Ecommerce and Internet sectors in emerging markets. Purchasing EMQQ provides exposure to companies that are positioned to benefit as emerging economies mature, the consumer class expands, and their populations increase their utilization of the Internet and ECommerce.
To view holdings information, click here.
Important disclosures
Carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and additional information can be found in the Fund's prospectus, which may be obtained by visiting www.emqqetf.com. Read the prospectus carefully before investing.
Risk Disclosures
Investing involves risk, including the possible loss of principal. Investments in smaller and mid-sized companies typically exhibit higher volatility. The fund is non-diversified. International investing may involve risk of capital loss from unfavorable fluctuations in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Frontier markets generally have less developed capital markets than traditional emerging market countries, and, consequently, the risks of investing in foreign securities are magnified in such countries. These countries are subject to potentially significant political, social, and economic instability, which could materially and adversely affect the companies in which the Fund may invest. The Fund invests in the securities of Internet Companies, including internet services companies and internet retailers, and is subject to the risk that market or economic factors impacting technology companies and companies that rely heavily on technology advances could have a major effect on the value of the Fund's investments.
There is no guarantee that the Fund or the index will achieve its investment objective. Holdings are subject to change. Current and future holdings are subject to risk.
Funds may underperform other similar funds that do not consider conscious/ESG guidelines when making investment decisions.
Exchange Traded Concepts, LLC serves as the investment advisor and Penserra Capital Management LLC serves as a sub-advisor to the fund. The Funds are distributed by SEI Investments Distribution Co. (SIDCO),1 Freedom Valley Drive, Oaks, PA, 19456, which is not affiliated with Exchange Traded Concepts, LLC or Penserra Capital Management LLC.
