Zach Stein, co-founder of Carbon Collective, explains how the company’s Climate Index can help investors identify ESG investments that accelerate progress toward a zero-carbon economy. Investors can have influence that can reshape business practices. It takes time and energy to understand how companies are changing to reduce their environmental impact, create positive social outcomes, and improve transparency and accountability. We also discuss the potential impact of the Securities & Exchange Commission’s recently proposed rule that would require companies to disclose greenhouse gas emissions and climate risks with their regular financial reporting.
The Carbon Collective’s basic approach suggests divesting from 20% of companies responsible for 85% of emissions, particularly fossil fuel companies, to reallocate those that capital to climate solution companies. Their tools are open for anyone to learn from, offering insights into companies based on Project Drawdown analysis of their environmental and social performance. Carbon Collective also plans to launch managed Exchange Traded Funds (ETFs) focused on climate and the social safety net. You can learn more at carboncollective.co.