What makes Global Equity "climate-focused"?
The OneFamily Global Equity fund takes into account what companies are doing to reduce, and adapt to, climate change before deciding to invest in them.
It uses a climate scoring system to rate companies compared to others in their sector, and buys shares in those that are overall doing less damage to the environment.
This sends a signal to companies that Global Equity will invest only in those that are doing the most to prepare for climate change and to reduce any negative impact they're having on the environment anywhere in their supply chain.
However, this fund may invest in some companies that might surprise you, such as oil and mining companies. While most of these companies are filtered out, some are included as they are able to prove that they're actively preparing for climate change.
Up to 35% of the money in our other fund choice, the OneFamily Global Mixed Investments fund, is also invested this way. The other 65% is invested in lower-risk, fixed-interest assets, and doesn't use a climate scoring system to select investments.
How you can invest in the OneFamily Global Equity fund
Our Stocks and Shares ISA and Lifetime ISA both come with the option to invest in the OneFamily Global Equity Fund. Simply select this fund when you open your product. You can switch funds at any time, free of charge.
How Global Equity selects and excludes companies
We start with all companies in the MSCI World Index and apply the following criteria to decide which meet our high standards.
1600
companies worldwide
are assessed by our team
Automatic exclusions
We automatically exclude companies if 10% or more of their revenue comes from involvement in high impact activities such as:
Controversial weapons
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.
Regularly Reassessed
Companies must keep striving to improve their, and their supply chain's, sustainability, as they are reassessed four times a year. Those who drop their green standards lose our investment, those who start getting greener have a chance at being included.
Our 5 key ranking factors
To qualify as deserving investment by our Global Equity fund, the organisations that haven't been excluded are then 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.
What are the targets for our Global Equity fund investments?
make the carbon emissions 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
How you can invest in a climate-focused fund
Both our ISA and Lifetime ISA come with the option to invest in our Global Equity fund, which uses the above screening criteria to select investments.
The other available fund, Global Mixed, invests up to 35% in company shares via the Global Equity fund using climate-focused selection criteria. The other 65% or so of Global Mixed is invested in lower-risk, fixed-income assets, which aren't chosen using a climate-scoring system and may include some assets that would be filtered out of Global Equity.
You'll be able to simply choose which fund you want to invest in when you open your ISA or Lifetime ISA. You can change fund at any time, free of charge.
If you have a Child Trust Fund or Junior ISA with OneFamily, you'll be able to move your money to an ISA or Lifetime ISA when you turn 18 through your online account.
What would you like to do next?
Find out more about how Global Equity chooses where to invest
We start with 1,600+ companies from the MSCI Word Index and invest in roughly 500 - 600 of them. Find out why one company might be invested in and another not.
Find out about opening an ISA
Our Stocks and Shares ISA comes with the option to invest in a climate-focused fund.
Find out about opening a Lifetime ISA
Our Lifetime ISA comes with the option to invest in a climate-focused fund. It can help you save for your first home or for life after 60.