Investing green works for your money and the environment
Now you don’t have to sacrifice the performance of your investments. Companies with high Ethical, Sustainable and Governance ratings tend to have more stable earnings and operate more effectively and efficiently.
Importantly, results from a 2018 Axioma study showed that investment portfolios, like ours, weighted to forward thinking outperformed benchmark ones.
Investment options with a conscience
The way we invest our ISA Funds is based on aligning with the United Nations Paris Accord limiting change 2ºC above pre-industrial levels.
How we choose which companies to invest in
We will only invest your money in shares of companies that achieve our high standards.
1600
companies worldwide
are assessed by our team
Regularly Reassessed
Companies must keep striving to be sustainable too, as they are reassessed four times a year. Those who drop their green standards get dropped, those who start getting greener have a chance at getting included.
Our 5 key ranking factors
To qualify as deserving to sit within our Climate Change fund, each organisation is ranked on 5 different factors:
1. Green revenues
What percentage of the company’s overall revenue comes from “green” business activities, such as low-carbon technology and “clean” energy production.
The more, the better.
2. Adaption score
The companies are also assessed on their climate change preparedness, such as their greenhouse gas emission targets and plans.
The more focused on a greener future, the better
3. Carbon intensity
How much carbon emission the company is responsible for, from creating themselves to relying on a supply chain that creates it.
The less, the better.
4. Fossil fuel reserves
How much greenhouse gas emissions result from the company’s fossil fuel reserves.
The less, the better.
5. Brown revenues
What proportion of the money the company makes is made through “brown” sectors like drilling, mining and other extractive activities.
The less, the better.
We automatically excluded companies involved in high impact activities such as:
Controversial weapons
We won’t invest in companies making cluster bombs, landmines, chemical, biological and nuclear weapons.
Oil sands
Greenhouse gas emissions, the extensive use of water in extractions and pollutants released during extraction are all environmentally damaging.
Thermal coal
Coal-fired power stations release more greenhouse gases per unit of energy than any other electricity sources.
What are the targets for our ISA and Lifetime ISA investments?
make the carbon intensity of the companies in our fund
than the average score of the 1,600+ companies we assess
make the fuels/brown revenues of the companies in our fund
than the average score of the 1,600+ companies we assess
make the green revenues score of the companies in our fund
than the average score of the 1,600+ companies we assess
Let’s take some examples...
Here are some real life examples of companies we have chosen to invest in, those we haven’t, and why.
Motor manufacturers |
||
 Honda  |
 Tesla |
|
| Carbon intensity |
||
| Green revenues |
||
| Adapting for change |
||
| Chosen for investment |
||
| Conclusion Honda aren’t doing too badly, and it looks like they are moving towards green revenues, but they aren’t thriving in a sustainable fashion like Tesla. As a result, Honda don’t appear in our fund at all, whereas Tesla do. |
||
Technology |
||
 Intel |
 Apple |
|
| Carbon intensity |
||
| Green revenues |
||
| Adapting for change |
||
| Chosen for investment |
||
| Conclusion Apple and Intel are both planning for the future and adapting for change. However Apple has a far lower carbon intensity than Intel. That means they are on our list for investment. |
||
Industrials |
||
 Honeywell |
 Vestas |
|
| Carbon intensity |
||
| Green revenues |
||
| Adapting for change |
||
| Chosen for investment |
||
| Conclusion Strong green revenues, clearly better adaptation for change and a lower carbon intensity make the reason for investment in Vestas over Honeywell clear. |
||
Sustainable investment that works
Through clear and defined strategies, we’re working towards providing responsible investment opportunities and support businesses striving to be better for the environment. This can benefit both you and the environment.