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The next step for your sustainable investments: investing in climate leadership

A summit of world leaders will soon convene in Scotland this week (Oct. 31- Nov. 12) for the 26th annual UN Climate Change Conference of the Parties (COP26). Every year, this meeting is held to track climate goals and push for accelerated action on an international level to fight the climate crisis.

We know that the climate crisis is not a natural phenomenon, but the result of decades of relentless resource extraction, deforestation, and mass production of greenhouse gas emissions across the globe. While the responsibility of reducing emissions and meeting net-zero targets by 2050 lies largely with major corporations and policy makers, it is vital that each of us consider the impact of our actions and make a conscious effort to live more sustainably. 

Divestment from fossil fuel industries is a first step. Amalgamated Bank has long been an advocate for fossil fuel divestment, having pledged not to invest or lend to fossil fuel companies more than 5 years ago. The Fossil Fuel Free Portfolios managed by Amalgamated Investment Services contain mutual funds and ETFs that have been rigorously screened and attained perfect scores for fossil fuel divestment per environmental watchdog As You Sow. In addition, the portfolios are constructed to integrate sustainability-focused industries, and social and racial justice impact themes, while also examining each manager’s diversity equity and inclusion metrics, shareholder advocacy, and public policy efforts. 

The next step is investing directly in climate leadership. As part of the sustainable equity sleeve of the Fossil Fuel Free Portfolios, you will be investing in climate leaders, alternative energy solutions, and other types of environmentally focused industries such as water infrastructure, resource recovery, and sustainable food and agriculture. This sleeve includes funds like Green Century—pioneers in the socially and environmentally responsible investing space. Green Century invests in environmental innovators and sustainable companies, while also leading shareholder advocacy, pushing companies to adopt tougher climate action policies that include protecting tropical forests and safeguarding water supplies.

The portfolio also includes the Pax Global Environmental Markets Fund, which invests directly in companies like Trimble Inc. and Siemens AG. Trimble provides geospatial and data-based solutions to enhance agricultural productivity at lower costs and with lower environmental impact. In 2018, Trimble enabled its clients to avoid 8.7 million tons of CO2 through more precise application of fertilizers.1 Siemens develops renewable energy equipment and smart grid solutions to increase the energy efficiency of buildings, public transportation, and digital factories. In 2019, the company helped its customers avoid 48 million tons of CO2 by reducing energy consumption.1

Other funds include Etho Capital, which follows the Etho Climate Leadership Index. This index is created using a five-step methodology to generate a diversified investment portfolio containing the most climate-efficient and sustainable companies. They start by analyzing the total greenhouse gas emissions from nearly 6,000 equities to select the “climate leaders” in every industry.2

The Amalgamated Fossil Fuel Free Portfolios give individuals the opportunity to invest and plan for the future, while also supporting environmentally responsible companies and aligning their money with their values. Not only is investing in these companies better for the planet, but we believe, and recent studies have shown, sustainable investments have a competitive edge in terms of financial performance.3

Do your part to save the planet and discover more about our Fossil Fuel Free Portfolios.

Mutual funds are offered by prospectus only. Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectus and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.

 


Learn more and check the background of our firm and investment professionals at FINRA's BrokerCheck.
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA/SIPC. Amalgamated Investment Services is a trade name of Amalgamated Bank. Infinex and Amalgamated Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.

 

1pax-gem-sustainability-impact-profile.pdf (impaxam.com)

2Smart Sustainability — Etho Capital

https://www.ft.com/content/733ee6ff-446e-4f8b-86b2-19ef42da3824