Impact Cubed announces the launch of its ESG screening tool, offering a nuanced analysis of funds and securities. An example finding from the tool found that 18% of funds labelled ‘ESG’ actually have a negative ESG impact in comparison to their market benchmark. Conversely, it also brings to light positive performers, such as the Global X China Clean Energy ETF, which is noted for its leading climate impact revenue among equity funds.
The tool’s capabilities include detailed screening across more than 100 quantitative ESG factors, embracing all globally listed companies and over 40,000 pre-uploaded funds. This breadth of coverage provides a comprehensive analytical platform for investors.
Initial screenings conducted by Impact Cubed have produced significant insights:
18% of funds marketed with ‘ESG’ in their title were found to have a negative ESG impact relative to their market benchmark.
4% of funds classified under Article 9 also fell short in terms of ESG impact when benchmarked.
This raises the question of if investors are getting the ESG impact they’re paying for.
Beyond identifying underperforming funds, the tool effectively spotlights those excelling in sustainable practices. Notable examples include the Northern Trust Europe SDG Screened Low Carbon Index FGR Fund, which boasts 47.3% of its revenue from renewable energy – a high among its ‘low carbon’ labelled peers. Similarly, the Global X China Clean Energy ETF stands out with 72.8% of its revenue derived from positive climate impact activities. This feature of the tool aids investors in pinpointing top ESG funds and provides in-depth analysis to verify their ESG credentials.
Impact Cubed’s factorised data powers the screener, reflecting a steadfast commitment to providing investors with the tools they need to make more informed sustainable decisions.
“Our ambition is to equip investors with the tools to not only identify genuine ESG performance but to drive forward the transition to a sustainable global economy. Our new fund screener embodies this mission, bringing clarity and actionable insight to sustainable investing.” – Jamie Goodwin, Head of Analytics Product
For more information or a demo of the screener, get in touch.