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Someone else commented: > If you have any investments shift them from fossil to green. I'm interested in ideas about how to do this. There are some MSCI indic
by wcoenen 8y ago
Someone else commented:
> If you have any investments shift them from fossil to green.
I'm interested in ideas about how to do this.
There are some MSCI indices along these lines like the "low carbon" ones[1]. But these still include fossil fuel companies, just with a lower weight.
There are also "ex fossil fuel" indices[2], but these only exclude companies that dig up the fossil fuels, and not necessarily those that emit. There is no weighting based on emissions in these.
Are there any broad equity indices that exclude fossil fuel companies and heavy emitters entirely, and then weight-adjust the rest based on emissions?
[1] https://www.msci.com/low-carbon-indexes https://www.msci.com/low-carbon-indexes
[2] https://www.msci.com/eqb/methodology/meth_docs/MSCI_Global_Fossil_Fuels_Exclusion_Indexes_Methodology_May_2017.pdf https://www.msci.com/eqb/methodology/meth_docs/MSCI_Global_F...
- WhompingWindows 8y agoIt's been discussed elsewhere, it's hard to find indices that are fossil-free that are also performant in the market. A lot of these supposedly fossil-free indices have some sketchy companies in them as well. Probably the best way to invest in green companies would be buying stocks of single companies you believe are making a difference. Outside of that, supporting bonds that encourage low-carbon products/behaviors, or making personal changes in your energy use and lifestyle and taking the financial trade to lower your carbon footprint there. Things like buying an EV, lowering heating/cooling use, biking more, reducing waste, increasing efficiency, these may cost you in comfort or convenience but will pay the planet back.
- kpennell 8y agoSPYX was a simple one to get for me: https://us.spdrs.com/en/etf/spdr-sp-500-fossil-fuel-reserves-free-etf-SPYX https://us.spdrs.com/en/etf/spdr-sp-500-fossil-fuel-reserves...
- wcoenen 8y agoThat's similar to the "ex fossil fuel" indices I mentioned. It does not eliminate or lower the weighting of big emitters. For example, airline companies are built around the burning of kerosene, but they don't own fossil fuel reserves so they will be fully present in that index.