“Do the best you can until you know better. Then when you know better, do better.”
— Maya Angelou
By Amberjae Freeman
The key findings of the 2020 Global ETF Investor Survey support what we have been dedicated to for years. ETF investors are searching for honest product development in the environmental, social and governance (ESG) space. When constructing our portfolio, we use a proprietary method we call the Smart Sustainability Process. As part of that process, we start by calculating the climate efficiency of over 6,000 individual companies. First, we divide each company's total carbon emissions by its total value to calculate carbon intensity per dollar invested (CO2e/$).
Climate efficiency is determined by dividing each company's respective carbon intensity by the average carbon intensity for that company’s particular industry sector.
Something that is important to note: our calculations include supply chain greenhouse gas emissions as well. These are often ignored by other ESG strategies, despite the fact that supply chain emissions often count for more than 80% of a company's climate impact.
Some of the companies who have made the cut and are included in the Etho ETF are:
Dexcom
Dexcom, Inc. is a San Diego based company that specializes in diabetes care technologies. The companies glucose monitoring systems and software are designed to help people with diabetes manage their glucose highs and lows and understand how their meals and exercise impact their illness.
Tesla
Founded in 2003, Tesla, Inc. is an electric vehicle and clean energy technology company based in Palo Alto, California. The company also manufactures powertrain components for other automakers.
Advanced Micro Devices
AMD is a semiconductor company based in Santa Clara County, California. The company develops microprocessors and software for use in business and consumer electronic devices.
Itron
Itron develops advanced metering and distribution technologies and software for water and energy utilities. The company is based in Liberty Lake, Washington
Topbuild
Daytona Beach, Florida based, TopBuild Corp. is an installer and distributor of residential insulation products and related accessories. The company serves customers in the United States.
The views and opinions expressed are those of the author and do not necessarily reflect those of Etho Capital, LLC.