Ethos launches a low carbon intensity world equities fund. Parallel to this, Ethos is joining the Montreal Carbon Pledge, a group of international investors that pledge to publish the carbon emissions of a part or of all their portfolios. On the eve of the Paris climate summit (COP 21) Ethos as a responsible investor contributes to reduce greenhouse gas emissions.
Launch of a low carbon intensity fund
To limit the financial risk tied to companies with high carbon intensity, Ethos is launching « Ethos – Equities Sustainable World ex-CH », a new subfund of the Ethos mutual fund reserved for qualified investors. The Scope 1 and 2 greenhouse gas (GHG) emissions of this portfolio are four times less than those of the benchmark.
In the process of company selection, Ethos is adding a new carbon intensity filter to its environmental, social and governance analysis. In each sector, only the most carbon efficient companies can be selected. The asset management is delegated to Pictet Asset Management which carries out the financial selection according to strict criteria of quality and financial sustainability.
Ethos considers climate change to be a financial risk for investors in the most GHG intense companies, especially in those with a weak commitment to self-regulation. This risk is particularly high in the energy sector in connection with the problem posed by oil reserves which cannot be burned, should the goal of maximum 2 degrees of warming be maintained (stranded assets).
Membership in Montreal Carbon Pledge
Ethos has joined the Montreal Carbon Pledge, a group of around one hundred investors that pledge to annually publish the carbon footprint of a part or all of their portfolios. The carbon footprint of the actively managed Ethos equity portfolios is available on its website.