Options that ranked lower than SRI Services might have hoped or expected are:
The all-important ‘Aims to generate positive impacts (and outcomes)’ just missed this top 50, coming in at 56 – although ‘Invests in clean energy/renewables’, a key ‘positive’ investment strategy – was in 30th place.
The other key means by which investors can (and must) help deliver positive change – through responsible ownership – was not regularly researched. The highest ranking filter option in that area was ‘Responsible ownership / stewardship policy (company-wide)’ which ranked 124th. Although relatively low it is notable that people searched for this as a fund management company wide strategy, rather than as a fund specific feature.
About ‘Net Zero’… Fund EcoMarket added a number of new filter options at the start of the year so that users would be able to find funds and fund management companies that were focused on achieving ‘Net Zero’ (carbon emissions)- clearly an important consideration. The fund level filter option ‘Require Net Zero action plan from all/most companies’ ranked 135th.
The two Net Zero related fund management company wide options (which are found in the Responsible Ownership filter) – ‘Net Zero commitment’ and ‘Working towards a net zero commitment’ – both ranked around 170th. Each was selected fewer than 50 times. There are 58 primary funds available from fund managers who selected at least one of these.
The also high profile (EU) SFDR Article & & 9 classifications do not appear to have resonated with users yet. They ranked 617 & 618 respectively, with very few clicks.
Commenting on these findings Julia Dreblow added: “As we look ahead to COP26 in November, it is more important than ever that the financial services and fund management communities work together to help deliver long overdue progress in areas like climate change and biodiversity loss.
“The continued growth of interest in this area is however most welcome. This analysis indicates the need to find simpler ways to explain sustainable and ESG options to intermediaries and that it must be backed by more granular information.
“My hope is that this brief analysis will once again contribute to the conversations that need to happen – and that our tool will continue to encourage openness and transparency that are our primary weapons in the fight against both intentional and unintentional greenwash.
“Although I would personally have chosen to put net zero and biodiversity related criteria right at the top, closely followed by human rights and diversity, it is nonetheless hugely heartening to see climate change related options moving ever higher – as that means climate issues are increasingly striking a chord with intermediaries and their clients.
“This is good news as we are fast approaching a time when climate risk will really start to hit asset values and I do not want individual investors to be left to pick up the tab.”
For more information about Found EcoMarket click here
About Julia Dreblow and SRI Services
Julia has worked full time in sustainable and responsible investment since 1996, having first become involved in 1991. SRI Services was set up in 2009 – shortly after leaving Friends Provident, where she had been their SRI marketing manager (and related roles) for 12 years. SRI Services’ main focus is the Fund EcoMarket fund tool, however we are also involved in related specialist consultancy (mainly with DFMs and platforms) as well as running events and working with others including UKSIF, the BSI and PIMFA.
SRI Services is not authorised or regulated. They do not offer advice and do not deal with individual investors. The information they provide is ‘for information only’ and not to be considered advice of any kind.
SRI Services is the trading name of SRI Consultants Ltd.
