- One year following its launch, all Climetrics fund ratings are now public
- In total, 1-5-leaf ratings for around 3,500 European funds now free-to-search
September 21, 2018: The climate rating for funds, Climetrics, has disclosed its rating results for an additional 2,500 funds on climate-related risks and opportunities.
Until now, only funds with the best two ratings – 4 and 5-leaf – were made public. The change means all rating results – 70% more – can now be found on climetrics-rating.org.
Backed by global environmental non-profit CDP and ISS-climate, Climetrics gives investors a clear and comprehensive assessment of a fund’s climate-related risks and opportunities, and a means to find investments that are well-positioned for the transition to a low-carbon economy.
The rating is based on three parts: a fund's portfolio holdings, its investment policy, and asset manager governance. The full Climetrics methodology is public.
At the portfolio level, investee companies are scored on their current carbon emissions, exposure to fossil fuels, use of clean technology, and their forward-looking strategies for managing long-term climate and deforestation risks.
A high Climetrics rating – 4 or 5-leaf – means that a fund invests in companies that are more carbon efficient, better at managing climate- related risks, and more likely to use key technologies that support the energy transition. The best-rated funds are also managed by asset managers that take public action to integrate climate change into their governance and investment processes.
The full results show that funds investing only in Europe, Eurozone and Japan tend to have better ratings compared to funds investing in UK, US or emerging market equities. Overall, results for funds investing globally are more balanced.
Across the more than 500 funds rated by Climetrics which invest globally, funds managed by members and signatories of CDP perform better than the average across all funds, with a ten-percentage point higher allocation to 3, 4 or 5-leaf funds compared to the global
distribution across all asset managers.
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Notes to editor
For more information or for exclusive interviews with the Climetrics team, please contact:
- Joshua Snodin, CDP t: +49 (0)17645910909 | e: [email protected]
- Fatou Samateh, ISS ESG t +41 (0) 767788807 | e: [email protected]
About Climetrics
Climetrics is the first rating that provides a holistic assessment of a fund’s climate-related risks and opportunities. It independently rates thousands of actively managed funds and ETFs and its ratings are free-to-search, providing investors with transparency on climate change-related risks when comparing funds.
Climetrics looks inside each fund, measuring its portfolio holdings' exposure to climate risks and opportunities, as well as the fund’s investment policy and the asset manager’s public action on climate change. It was developed by two recognized climate specialists, non-profit CDP and ISS-climate. The project was catalyzed and funded by Climate-KIC, the EU's main climate innovation initiative.
For more information visit www.climetrics-rating.org. #climetrics
About ISS ESG
ISS ESG is the responsible investment arm of Institutional Shareholder Services Inc.(ISS), the world’s leading provider of environmental, social, and governance solutions for asset owners, asset managers, hedge funds, and asset servicing providers. Under the ISS ESG umbrella are three discrete units that draw on deep historical and industry expertise, including: ISS-ethix, which enables investors to develop and integrate responsible investing policies and practices, engage on responsible investment issues, and monitor portfolio company practices through screening solutions; ISS-climate, which provides data, analytics and advisory services to help financial market participants understand, measure, and act on climate-related risks across all asset classes; and ISS-oekom, which provides corporate and country ESG research and ratings and enables its clients to identifying material social and environmental risks and opportunities including through advisory services. ISS ESG clients rely on the expertise of all three to help them integrate responsible investing policies and practices into their strategy and shareholder voting decisions. For more information, please visit www.issgovernance.com.
About CDP
CDP is an international non-profit that drives companies and governments to reduce their greenhouse gas emissions, safeguard water resources and protect forests. Voted number one climate research provider by investors and working with institutional investors with assets of US$87 trillion, we leverage investor and buyer power to motivate companies to disclose and manage their environmental impacts. Over 6,300 companies with some 55% of global market capitalization disclosed environmental data through CDP in 2017. This is in addition to the over 500 cities and 100 states and regions who disclosed, making CDP’s platform one of the richest sources of information globally on how companies and governments are driving environmental change. CDP, formerly Carbon Disclosure Project, is a founding member of the We Mean Business Coalition. Please visit www.cdp.net or follow us @CDP to find out more.