Homaio allows private investors to access financial products combining high risk-adjusted returns with demonstrated climate impact. This is what we call "climate assets." We define them in the following way:
Financial Products: A standardized contract that can be bought, traded, or sold on an organized market with a significant trading volume. For example, carbon credits are not financial products because they are not standardized and have very low trading volumes (What is the difference between emission allowances and carbon credits?). We also do not consider niche opportunities or over-the-counter (OTC) traded products.
High Risk-Adjusted Returns: We believe that returns should always be consistant with the product's risk level. Climate assets must be at least as rewarding for private investors as other assets with an equivalent risk level. We do not believe that climate impact is a justification for degraded returns.
Demonstrated Climate Impact: Our products must empirically demonstrate that they have a real climate impact. This means that this impact must be measurable and quantifiable, and focus on a physical indicator: temperature, greenhouse gas emissions, rainfall, etc. We do not believe standards, methods, labels, or norms are objective indicators of impact.