The impacts of fossil fuels and carbon intensive business, is a concern for may ethical investors. Here's an example of some of the work being undertaken by investment managers EdenTree, to measure the carbon exposure of their funds so that they can be better informed when engaging with companies.
The impacts of fossil fuels and carbon intensive business, is a concern for may ethical investors. Here's an example of some of the work being undertaken by investment managers EdenTree, to measure the carbon exposure of their funds so that they can be better informed when engaging with companies.
In July of 2016 EdenTree signed the PRI Montreal Pledge which signalled a commitment to voluntarily measure and disclose the carbon footprint of equity portfolios on an annual basis. They believe that one of the pre-eminent risks in years to come is carbon emissions and that companies not taking action to reduce or disclose their emissions could run into reputational, regulatory and financial difficulty in the future thus impacting shareholder returns.
The carbon footprint reports of their Amity UK Fund, Amity International Fund and Amity European Fund are now available online. All three funds came in as less carbon intense than their respective benchmarks. From the results of these reports EdenTree is also able to identify high emitters within each of the funds and engage with these companies to encourage them to set emission reduction targets.
We hope that this information is useful in understanding some of the approaches that investors take to address issues around climate change risk and carbon emissions.
Click here for more information about the EdenTree carbon footprinting policyEdentree – carbon reporting.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article does not provide individual tailored investment advice and is for guidance only. We cannot assume legal liability for any errors or omissions it might contain. Ethical Futures llp is authorised and regulated by the Financial Conduct Authority.