The problem
Rising greenhouse gas emissions are driving climate change at a rate much faster than anticipated. Global CO2 levels reached more than 145% of pre-industrial levels in 2017, and the pathway to 1.5 degrees celsius (the threshold for dangerous global warming) is at serious risk. While the use of renewable energy has grown, it still remains only 15-20% of global energy consumption, and approximately 800 million people do not have electricity or clean cooking fuels. Far more ambitious and accelerated action is needed to mitigate and adapt to the impacts of climate change. Corporations can lead in this effort in many ways, including by reducing their carbon intensity and greenhouse gas emissions, engaging with supply chains on efforts to reduce emissions, transparent reporting on climate change impact, development of innovations that address climate change (such as clean energy technologies), and supporting adoption of clean energy technologies (for example, by transitioning vehicle fleets to electric vehicles)
How companies are rated
Ethos is using 254,505 unique data points since 2017 to rate companies, stocks and funds on climate action, including from these metrics:
Financial performance
r =
Company ratings 1-yr return
Top 10 for climate action
Top 50 for climate action
S&P 500 Index
Bottom 50 for climate action
Bottom 10 for climate action
Climate action 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
Renewable energy
clean energy
affordable energy
sustainable energy
green house gas emissions
air pollution
climate change
climate action
disaster readiness
disaster aid
natural disasters
UN Sustainable Development Goal 7
UN Sustainable Development Goal 13