Our Commitment to Climate Risk Reduction
Sustainability-focused investors now regard greenhouse gas emissions as the most important variable when it comes to climate impact. That’s why we’re enthusiastic supporters of the fossil fuel divestment movement.
Divestment campaigns across the globe are using The Carbon Underground 200 as the definition for “fossil fuel companies” in their divestment ask. Like the Carbon Underground 200, our US and International Core Equity funds aim to reduce exposure to potential emissions from current fossil fuel reserves of the largest publicly-owned producers to zero.
Palm oil production is the fastest growing cause of rainforest destruction today, and rainforest destruction is the second biggest driver of climate change after the burning of fossil fuels. That’s why we also exclude non-sustainable palm oil producers as recommended by Friends of the Earth.
But we go further. Our US and International Core Equity funds exceed the standards of the divestment movement by excluding major owners of coal-fired power plants — the #1 problem, say climate experts — and substantially reducing exposure to industrial greenhouse gas emissions.
We also exclude factory farming and companies in any industry deemed to have a particularly negative connection with land use and biodiversity, toxic spills and releases, operational waste, and water management.
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And we don’t stop there. In addition to an exclusion strategy, we overweight the most sustainable companies while avoiding those that are average or below average. The consequence of this approach, at the industry level, is to shift capital from companies with the worst sustainability scores toward companies with the best scores.
Why does this matter?
If investors — on a global scale — divert their capital from climate stressors to more climate-resilient alternatives, the risks of abrupt and irreversible climate change will be reduced.
OVER $100 MILLION OF ASSETS SUSTAINABLY MANAGED
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