How your choice of fund can help tackle the climate emergency
We take climate change seriously. That's why we give our ISA and Lifetime ISA customers the option to invest their money in a "climate-friendly fund".
Our Global Equity fund buys shares in companies that are overall less damaging to the environment compared to similar companies in the same sector. This sends a signal to companies that only those who score the highest within their industry on our climate scoring system will get our investment.
We re-score companies regularly which gives them a strong reason to work towards reducing their environmental impact.
Up to 35% of the money in our Global Mixed fund is also invested this way. The rest is invested in lower-risk, fixed-interest assets.
Investment options with a conscience
We invest our Global Equity fund based on scenarios provided by the Intergovernmental Panel on Climate Change (the United Nations body for assessing the science related to climate change).
How we choose which companies meet our climate-friendly standards
We look at all companies on the MSCI Index to decide which meet our high standards.
1600
companies worldwide
are assessed by our team
Regularly Reassessed
Companies must keep striving to be sustainable too, as they are reassessed four times a year. Those who drop their green standards lose our investment, those who start getting greener have a chance at getting included.
Our 5 key ranking factors
To qualify as deserving investment by our Global Equity fund, each organisation is ranked on 5 different factors:
1. Green revenues
What percentage of the company’s overall revenue comes from “green” business activities, such as low-carbon technology and “clean” energy production.
The more, the better.
2. Adaption score
The companies are also assessed on their climate change preparedness, such as their greenhouse gas emission targets and plans.
The more focused on a greener future, the better
3. Carbon intensity
How much carbon emission the company is responsible for, from creating themselves to relying on a supply chain that creates it.
The less, the better.
4. Fossil fuel reserves
How much greenhouse gas emissions result from the company’s fossil fuel reserves.
The less, the better.
5. Brown revenues
What proportion of the money the company makes is made through “brown” sectors like drilling, mining and other extractive activities.
The less, the better.
We automatically excluded companies involved in high impact activities such as:
Controversial weapons
We won’t invest in companies making cluster bombs, landmines, chemical, biological and nuclear weapons.
Oil sands
Greenhouse gas emissions, the extensive use of water in extractions and pollutants released during extraction are all environmentally damaging.
Thermal coal
Coal-fired power stations release more greenhouse gases per unit of energy than any other electricity sources.
What are the targets for our Global Equity fund investments?
make the carbon intensity of the companies in our fund
than the average score of the 1,600+ companies we assess
make the fuels/brown revenues of the companies in our fund
than the average score of the 1,600+ companies we assess
make the green revenues score of the companies in our fund
than the average score of the 1,600+ companies we assess
How you can invest in a climate-friendly fund
Both our ISA and Lifetime ISA come with the option to invest in a 100% climate-friendly fund (Global Equity) or a fund that invests up to 35% in climate-friendly options (Global Mixed - the other 65% or so is invested in lower-risk, fixed-income assets).
You'll be able to simply choose your fund when you open your ISA or Lifetime ISA. You can change fund at any time, free of charge.
If you have a Child Trust Fund or Junior ISA with OneFamily, you'll be able to move your money to an ISA or Lifetime ISA when you turn 18 through your online account.
What would you like to do next?
Learn about the impact of climate-friendly investing
Our climate-friendly fund selects companies that produce less CO2e emissions, rely less on fossil fuels and are working towards having a more positive impact on the environment.
Find out about opening an ISA
Our Stocks and Shares ISA comes with the option to invest in a climate-friendly fund.
Find out about opening a Lifetime ISA
Our Lifetime ISA comes with the option to invest in a climate-friendly fund. It can help you save for your first home or for life after 60.