EIT Climate-KIC supported Climetrics announces top ten European equity funds for climate performance

Climetrics, the world’s first and only independent climate rating for investment funds, supported by EIT Climate-KIC, yesterday recognised ten equity funds as the top performers on climate change in Europe at the CDP Europe Awards in Brussels. This is the first time, globally, that funds have been awarded for environmental leadership.

The Climetrics fund awards were presented by Helen Spence-Jackson, Head of EU Affairs at EIT Climate-KIC, and Nico Fettes, Head of Climetrics at CDP. Ten equity funds were recognized as the top performers on climate change. Of the ten, asset managers BNP Paribas, Candriam and Mirova had two funds recognised, with La Financiere de l’Echiquier, La Banque Postale Asset Management, OFI Asset Management, and NN Investment Partners also represented.

© Leyla Hesna

The ranking is based on data from Climetrics. The CDP-data powered tool measures the climate performance of a fund’s stocks, its asset manager’s governance of climate issues, and its investment policy, to help investors find funds well-positioned in the transition to a low-carbon economy.

Out of hundreds of funds in the European equity category, the top ten actively managed funds were chosen based on their Climetrics score. The selected funds stand out as investing in European companies which are most focused on prioritising sustainability.

The awards were part of a larger event hosted by CDP Europe. Speakers such as H.S.H. Prince Albert II of Monaco, Valdis Dombrovskis, European Commission Vice-President for the Euro and Social Dialogue, and a whole array of senior-level executives, key policymakers and innovative investors, were present.

“EIT Climate KIC’s Decision Metrics and Finance Programme helped Climetrics to develop its business model and reach new audiences through our networks through to its launch in 2017, so it is exciting to see it today for the first time recognising top performers,” said Riyong Kim, Head of Programmes, Decision Metrics and Finance, EIT Climate-KIC. “This rating is a first of its kind that places climate and sustainability at the centre of investment decisions. Hopefully, this will provide incentives to even more funds to improve their climate performance.”

Nico Fettes, Head of Climetrics at CDP, said:

“Improving the transparency in the fund industry is crucial if our economy is to move capital towards sustainable investments fast enough. Our aim with Climetrics is to give confidence that their investments are well positioned in this transition, and Climate-KIC has been instrumental in catalysing this project and enabling this information to get to the market.”

Launched in 2017, Climetrics is a unique fund-rating scheme providing the world’s first independent climate impact analysis of investment funds using a holistic, rules-based and transparent approach.

It uses the most up-to-date information to allow investors to integrate climate risk factors into fund selection and monitoring in a transparent, effective and cost-efficient way.

By using Climetrics’ data, asset managers can use climate risk information to create new low-carbon funds and shift money towards lower-carbon assets.

The equity fund market is worth more than €3 trillion in Europe and could be a significant lever for mitigating climate change. But, despite fast-growing demand for climate-conscious investing, until the arrival of Climetrics, there had been no rating system to allow investors to compare the climate risk in investments, such as entrenched investment in fossil fuels or lack of climate change strategy.

EIT Climate-KIC recognised Climetrics’ potential, the financial expertise, strength and climate mission of its consortium comprising core partners CDP and Institutional Shareholder Services. Our workshops and masterclasses helped develop the business model, while our support and network helped Climetrics to reach new audiences in the policy arena.

EIT Climate-KIC also provided support to the consortium in the development of Climetrics through its innovation demonstrator programme.

CDP, the non-profit environmental disclosure platform, launched its European Report: Higher Ambition, Higher Expectations at the awards ceremony.