Climate research provider and environmental disclosure platform CDP released today the list of the top 20 investment actively managed equity funds based on environmental performance in 2021, ranked by its environmental ratings platform Climetrics.
Mirova and La Banque Postale Asset Management each had three funds in the top 20, followed by Robeco and Aberdeen Standard Fund Managers with two each. Other asset managers recognized in the top green funds rankings included AXA Investment Managers, Schroders, Storebrand, Allianz, and HSBC. Of the 16 asset managers, 15 are part of the Net Zero Asset Managers initiative.
The top funds were selected by Climetrics, which publishes monthly ratings for 18,000 funds representing over €15 trillion. Climetrics assesses performance on issues including climate change, deforestation and water security, with considerations including funds’ portfolio holdings, investment policies, and asset managers’ governance of climate issues.
The analysis integrates CDP’s company scores, and utilizes data from sources including CDP temperature ratings, the Science Based Targets initiative, and the ACT Initiative, which assesses how ready an organization is to transition to the low-carbon economy (ACT and SBTi were both co-founded by CDP). According to CDP, the analysis also considers portfolio companies’ management of environmental challenges or investment in solutions.
Nico Fettes, Head of Product Development at CDP Europe, said:
“We know that the vast majority of global funds do not yet support the urgent global transition to an economy that is 1.5°C-aligned and living in harmony with our finite natural resources. We do not have time to waste. The fund industry – and individual investors – simply must start driving capital into the companies of the future. That’s why it’s critical that investors big and small can easily find the very few funds that are currently walking the talk with excellent environmental performance.”
The 20 funds highlighted include five each from four equity categories including Global, European, US, and Emerging Markets. See below for the top funds in each category.