Partnership
The Etho Capital team are mission-driven experts with an innovative and interdisciplinary approach to sustainable investing. Since 2015, Etho’s climate efficiency methodology provides comprehensive and accurate identification of climate-leading companies. Etho designs products which can reduce the emissions profile of investment products by +70% relative to conventional indices. Etho’s net climate-positive methodology goes even further, making it possible to produce investment products that actually offer a net climate benefit, per dollar invested. More than USD 500 million in assets under management use Etho’s strategies and research.
Etho Capital’s team members are thought leaders in sustainable investing. In fact, our President and CIO, Ian Monroe has recently co-authored a book about how to address many of the challenges related to climate change.
Methodology
Filter starting universe
- Companies that have at least 50% greater climate efficiency (Scope 1, 2, 3) than their respective industry median.
- Companies that have negative net greenhouse gas emissions.
Exclude negative emissions
- Companies that meet the Paris 2050 Agreement GHG emission reduction target.
- Companies that have net negative net greenhouse gas emissions.
Apply ESG factors
- Companies that pass ETHOS's overall ESG screen which includes factors such as environmental sector involvement, controversial weapons involvement, social sector involvement, and governance infractions.
Screen permissible markets
- Companies must not be incorporated or headquartered in the following countries: Russia, United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Brunei, Oman, Libya, Guyana, and Bahrain.
Benefit
ETHOI goes several steps further incorporating the most quantifiable metrics directly related to a company’s core operations, including upstream and downstream (scope 1, 2, and 3) impact.