ETF and equity funds’ climate impact can be analysed with new tool

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Investors can now analyse the climate impact of equity funds and ETFs through a new subscription service launched online today.

It comes ahead of the G20 meeting in Hamburg, where Mark Carney’s report from the Task force on Climate-related Financial Disclosures will be presented to world leaders calling for better disclosure on climate risks.

Climetrics data covers €2trn in funds including 55 per cent of available equity assets.

Each fund is rated on a scale of one to five “green leaves”, with Schroders, Old Mutual and HSBC among the UK asset managers offering at least one fund with a five-star rating.

Dedicated responsible investors Hermes, EdenTree and Alliance Trust, now part of Lionstrust, also feature among those with top-rated funds.

The climate impact of all individual companies in which the fund is invested accounts for 85 per cent of the score, but asset managers environmental policies are also taken into account for 10 per cent of the score, while specific ESG mandates for relevant funds account for 5 per cent of the score.

European Union’s main climate innovation initiative Climate-KIC has funded the tool, which is also backed by the responsible investment arm of Institutional Shareholder Services and CDP.

A letter signed by 389 global investors this week called for G20 leaders to implement frameworks outlined in Carney’s report, reiterate support for the Paris Agreement, drive investment into the low carbon transition, and bring forward energy plans that align with commitments to keep global average temperature rises under 2 degrees Celsius.

Top rated funds are available for free on the subscription service.

Performance for top-rated Climetric funds

Fund 1 yr 3 yr
EdenTree Amity International 18.7 31.6
Rathbone Global Opportunities 22.2 63.7
Stewart Investors Worldwide Sustainability 16.5 59.2
Liontrust SF Global Growth 20.8 46.2
HSBC GIF Global Equity Climate Change 22.2 38.2
Old Mutual Newton Global Income 11.9 56.9