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How to tell if your managed fund or ETF is truly green

If the carbon intensity data is not provided, then you need to ask why. Likely you could find the answer at MSCI ESG, which makes many funds’ carbon emissions data and ESG profiles available to the public. Go to msci.com/esg-fund-ratings and search for your fund.

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Just type in the name and you will see the fund’s carbon intensity score, its “green” versus “brown” revenue score and its overall ESG profile. Armed with that information, you can make a better-informed investment decision and help avoid greenwashing.

Companies that truly reduce global emissions can be excellent investments. In the past 12 months, the S&P Global Clean Energy Index is up more than 75 per cent. The index includes a mix of 30 companies from around the world that are involved in clean energy related businesses. These include solar and wind energy production, hydro electricity, biofuel, ethanol and alcohol fuel production, and related technologies.

Arian Neiron is head of Asia Pacific at fund manager VanEck

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