2017 Eco-Funds Rating Methodology

corporate knights

The Eco-Fund Ratings remain a work in progress, intended as a best effort to identify which funds offer investors the most exposure to companies solving environmental problems with the least exposure to companies causing the problems, blended with best-in-class financial performance.

The Eco‐Fund Ratings highlight funds that have excelled environmentally and financially against their fund category peers on the following criteria:

50 per cent weighting: delivering best‐in‐class three‐year compound returns net of fees (powered by Fundata) combined with

50 per cent weighting: delivering best‐in‐class environmental performance, determined by:

  • 22.5 per cent: each fund’s exposure to companies that provide environmental solutions*
  • 22.5 per cent: minimizing exposure to companies that have the biggest negative impacts on the environment**
  • 5 per cent: credit given to funds that have explicit intentions to invest in a socially responsible manner.***

The best performing 20 per cent of funds in each category are awarded a 5 Tree Eco‐Rating score, and the next 20 per cent receive a 4 Tree Eco‐Rating score.

* Derive at least 20 per cent of revenue from environmental markets or new energy as verified by FTSE Environmental Markets and/or Bloomberg New Energy Finance.

** Factory farms, palm oil deforestation, deforestation, severe environmental damages, unsustainable seafood, unsustainable cotton, thermal coal, oil and gas, lobbies to block climate action. Data sources include Union of Concerned Scientists, Global Canopy Programme, WWF, Greenpeace, Norwegian Council on Ethics, Oxford University and InfluenceMap.

*** Fund is listed on Responsible Investment Association’s RI Funds – Quarterly Performance Reports

Corporate Knights Notice and Disclaimer

This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of Corporate Knights Inc. known herein as “Corporate Knights” and is provided for informational purposes only. The Information may not be modified, reverse-engineered, reproduced or redisseminated in whole or in part without prior written permission from Corporate Knights.

The Information may not be used to create indexes, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information or any other Corporate Knights data, information, products or services.

The user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. CORPORATE KNIGHTS DOES NOT MAKE ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF).

Information containing any historical information, data or analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. Past performance does not guarantee future results.
None of the Information constitutes an offer to sell (or a solicitation of an offer to buy), any security, financial product or other investment vehicle or any trading strategy.

The Information may contain back tested data. Back-tested performance is not actual performance, but is hypothetical. There are frequently material differences between back tested performance results and actual results subsequently achieved by any investment strategy.

Constituents of Corporate Knights equity indexes or stock lists are listed companies, which are included in or excluded from the indexes or lists according to the application of the relevant methodologies. Accordingly, constituents in Corporate Knights equity indexes or lists may include Corporate Knights, clients of Corporate Knights or suppliers to Corporate Knights. Inclusion of a security within a Corporate Knights index or list is not a recommendation by Corporate Knights to buy, sell, or hold such security, nor is it considered to be investment advice.

Corporate Knights receives compensation in connection with licensing its indexes to third parties. Corporate Knights Inc.’s revenue includes fees based on assets in Index Linked Investments.
Any use of or access to products, services or information of Corporate Knights requires a license from Corporate Knights. Corporate Knights brands and product names are the trademarks, service marks, or registered trademarks of Corporate Knights and its subsidiaries in Canada, United States and other jurisdictions.


Click here to go back to the ranking landing page.

Latest from 2017 Eco-Funds

current issue