The problem
Rising greenhouse gas emissions are driving climate change at a rate much faster than anticipated. In 2017, CO2 levels reached more than 145% of pre-industrial levels and the global pathway to 1.5 degrees celsius (the threshold for dangerous global warming) is at serious risk. While there are some positive steps with climate finance flows, far more ambitious plans and action are needed to mitigate climate change and its impacts. Companies play a critical role in this effort in many ways, including through their direct use of carbon and contribution to greenhouse gas emissions (and efforts to reduce such emissions), engagement with their supply chains on efforts to reduce emissions and carbon intensity, development of new innovations that can mitigate climate change (such as clean energy technologies), and commitment to transparent reporting on climate change impact
How companies are rated
Ethos is using 212,777 unique data points since 2017 to rate companies, stocks and funds on reduced green house gas emissions, including from these metrics:
Financial performance
r =
Company ratings 1-yr return
Top 10 for reduced green house gas emissions
Top 50 for reduced green house gas emissions
S&P 500 Index
Bottom 50 for reduced green house gas emissions
Bottom 10 for reduced green house gas emissions
Reduced green house gas emissions has a slight positive correlation (
) with financial returns, meaning companies that perform better in this impact area tend to perform slightly better financially
Data partners and sources
What this formula is about
Green house gas emissions
air pollution
climate change
climate action
carbon emissions
UN Sustainable Development Goal 7