An analysis of data underlying Climetrics, the world’s first climate impact rating for funds developed jointly by CDP and ISS-Ethix Climate Solutions, finds just over 60% of funds and ETFs offered by asset management firms based in Sweden receive either a 4 or a 5 leaf rating,

representing the two top marks under the Climetrics rating scale. Launched on July 6, 2017, Climetrics measures climate impact more comprehensively than any fund rating to date, capturing three aspects of analysis to assess a fund along its entire investment process, including the climate impact of its portfolio holdings; the extent to which the asset manager integrates climate change into its governance and investment processes; and whether the fund has a specific ESG investment policy. The Climetrics fund universe covers approximately 2800 of some of the largest actively managed equity funds and ETFs available for sale in Europe[1], with ratings for the best-rated funds publicly available on climetrics-rating.org.

The analysis examined the prevalence of asset managers’ well-rated funds on an intra-market basis across the following six European countries in which Climetrics covers a minimum of 75 funds based in each country: France, Germany, the Netherlands, Sweden, Switzerland, and the U.K.

 

A significant gap is seen between Sweden, with 60%, and the next best market, with just 39% of all German funds receiving either a 4 or 5-leaf rating. Switzerland follows closely at 38%, with France at 37%, the Netherlands at 33%, and the U.K. at 22%. The analysis also reveals that Sweden has the highest percentage of Climetrics-rated funds with an explicit ESG mandate, at 48%, followed by the Netherlands and France at 44% and 21 % respectively.