Understanding the "how" in sustainable investment
When constructing a sustainable investment portfolio, the temptation is often to exclude all companies who are operating within carbon-intensive sectors, such as utilities. However, this negative screening approach will often exclude, unnecessarily in our view, enticing investment opportunities.
In this report, we evaluate 40 of the largest US and European electric utility companies and by using a positive screening approach, rank companies within the sector and select those who are most advanced in their low-carbon journey. These Carbon Leaders have the potential to enhance returns without compromising the principles of sustainability investing.
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