Carbon Collective Launches the 2022 Climate Index

SAN FRANCISCO, Dec. 9, 2021 /PRNewswire/ — Carbon Collective, the first online investment advisor 100% focused on solving climate change, launched its 2022 Climate Index, the most comprehensive list of...

SAN FRANCISCO, Dec. 9, 2021 /PRNewswire/ — Carbon Collective, the first online investment advisor 100% focused on solving climate change, launched its 2022 Climate Index, the most comprehensive list of climate solution stocks ever assembled.

As climate change exacerbates forest fires, flooding, heat waves and more, investors are increasingly in search of investments that power solutions to the crisis. Carbon Collective is meeting these demands by creating low fee, diversified portfolios with a clear theory of change for driving climate impact.

“Climate change is a solvable problem,” says Zach Stein, co-founder of Carbon Collective. “We have the technological innovation at hand, but an annual investment of $5 trillion is needed to make real change. Therefore, it’s not enough to divest, although it’s an important and necessary first step. We have to reinvest into climate solutions, and while doing so, remove as many barriers as possible. That’s why Carbon Collective created the Climate Index, which makes investing in climate solutions transparent.” 

The 2022 Climate Index is centered around the comprehensive plan for solving climate change created independently by Project Drawdown, a leading resource for climate solutions. The 2022 index includes all companies that build a climate solution and generate more revenue from them than serving the fossil fuel industry. Carbon Collective analyzed more than 400 publicly-traded U.S. exchange-listed companies for consideration, with 169 equities making it into the 2022 Climate Index. These companies represent a broad set of industries such as clean energy, building efficiency, clean transportation, circular economy, food & agriculture, and health sectors, with each individual company weighted according to market capitalization. Companies that did not make the index receive more than 50% of revenues from fossil fuel companies, or have failed to adequately disclose relevant revenue and sustainability metrics.

The 2022 Climate Index is incorporated into the broader Carbon Collective portfolio, giving investors the option to include its Low Carbon Economy as an investment option for further diversification. The Low Carbon Economy is a systematic divestment from fossil fuel emitting sectors from the entire universe of U.S.-listed companies, eliminating energy, utility, industrials and materials. These four sectors account for ~19% of the market and 85% of its emissions. The Low Carbon Economy portfolio also excludes publicly-traded major financial institutions which fund fossil fuel extraction, as well as meat processing, weapons manufacturers, and private prisons. Combined with the green bond ETFs and U.S. Treasuries that comprise the fixed income allocation of the portfolio, Carbon Collective’s Core Portfolios offer members competitively performing portfolios aligned with solving climate change, for the same fees and similar risk/reward profile as generic index-based portfolios. 

“The current financial industry cannot even conceive of climate risk, let alone ways to harness its collective will in order to solve an immense problem like climate change,” said James Regulinski, co-founder of Carbon Collective. “Through Carbon Collective and our 2022 Climate Index and climate-focused portfolios, we can transparently and aggressively invest in these scalable solutions quickly.”

The number of climate solution stocks on the 2022 Climate Index has increased 60% from the original companies in the index, first launched in 2021, with ten new electric vehicle companies, seven plant-based food companies, and three women’s reproductive health companies. The 2022 Climate Index’s top five companies, ranked purely by market capitalization are Tesla, NextEra Energy, Applied Materials, Zoom Communications, and ABB.

“It’s not just transparency that we see as a barrier,” concluded Zach Stein, “We also need to adhere to the best investment practices of keeping fees low, diversification, competitive performance, and eliminating investment minimums. As people build their wealth, they shouldn’t sacrifice their investment experience. We are making it as easy as possible for them to do the right thing.”

About Carbon Collective
Carbon Collective is the first 100% climate focused online investment advisor with the mission to close the annual $5 trillion dollar climate investment gap. By divesting portfolios from fossil fuels, and reinvesting that same allocation in climate solutions, Carbon Collective makes investing in climate solutions accessible to all with low fee, zero minimum, highly diversified portfolios, with 85% fewer emissions. The Company augments its investment strategy with shareholder advocacy, leveraging member’s votes to advocate for corporate climate action. Founded by Zach Stein and James Regulinski, and backed by prominent venture capital firms like Precursor Ventures and My Climate Journey, Carbon Collective is out to disrupt the finance industry and solve climate change. 

For more information on Carbon Collective, please visit https://www.carboncollective.co

Disclaimers
Advisory services provided by Carbon Collective Investment LLC (“Carbon Collective”), an SEC-registered investment adviser. A copy of Carbon Collective’s current written disclosure statement discussing Carbon Collective’s business operations, services, and fees is available at the SEC’s investment adviser public information website – www.adviserinfo.sec.gov or our legal documents here.

The articles and research support materials available on this site are educational and are not intended to be investment or tax advice. Carbon Collective does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Carbon Collective’s web site or incorporated herein, and takes no responsibility therefor. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly.

Investments in securities: Not FDIC Insured • No Bank Guarantee • May Lose Value. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. Before investing, consider your investment objectives and Carbon Collective’s charges and expenses. Carbon Collective’s internet-based advisory services are designed to assist clients in achieving discrete financial goals. They are not intended to provide comprehensive tax advice or financial planning with respect to every aspect of a client’s financial situation and do not incorporate specific investments that clients hold elsewhere. For more details, see our Form CRS, Form ADV Part 2 and other disclosures. Past performance does not guarantee future results, and the likelihood of investment outcomes are hypothetical in nature. Not an offer, solicitation of an offer, or advice to buy or sell securities in jurisdictions where Carbon Collective is not registered.

SOURCE Carbon Collective

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