The problem
Income inequality continues to rise in many parts of the world. The richest 1 percent (those with more than $1 million in assets) own 45 percent of the world’s wealth; adults with less than $10,000 in wealth make up more than 60 percent of the world’s population but hold less than 2 percent of its wealth. Income inequality often follows lines of gender, race and nationality, and is tied to other structural inequalities (such as unequal female representation in executive positions or political offices). Corporations can address inequality in many ways, including through their internal policies and practices, strategic choices (such as where to build a facility or incorporate), business relationships (such as with suppliers), and involvement in public policy
How companies are rated
320K
Ethos is using 320,190 unique data points since 2017 to rate companies, stocks and funds on reduced inequality, including from these metrics:
Financial performance
r =
+0.028
Company ratings 1-yr return
Top 10 for reduced inequality
Top 50 for reduced inequality
S&P 500 Index
Bottom 50 for reduced inequality
Bottom 10 for reduced inequality
Reduced inequality has a slight positive correlation (
+0.028
) 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
Inequality
wealth inequality
economic justice
inclusive economy
UN Sustainable Development Goal 10