We look at climate change through an investment lens.
We see investment risks and opportunities alike directly related to climate change, and we address them across all of our sustainable and responsible strategies.
Understanding the Investment Impact of Climate Change
Calvert assesses both risks and opportunities associated with climate change for companies across all sectors. Specifically, our evaluation includes an examination of GHG (greenhouse gas) emissions inventories, mitigation efforts, adaptation strategies, and alternative energy investments in R&D and/or clean-technology improvements. Overall, we look at a company’s internal climate reporting, external public policy, and climate change strategy, including where relevant the four elements outlined below:
Calvert Funds Beat Their Benchmarks for Carbon Intensity
Calvert has made a business priority out of moving the needle on the issue of climate change. We have focused on promoting new carbon policies, evaluating how companies respond to carbon risk, engaging with companies to improve, and assessing our company’s own carbon footprint. Our most important impact as a company is that made through our products – that is, the carbon footprint of our funds. Read on to understand how select Calvert SRI Funds have a much lower carbon intensity then their benchmarks.
Helping Investors Capitalize on Climate Change Opportunities
Calvert’s three distinct sustainable and responsible investment approaches provide investors with three different ways to address climate change risks and opportunities in their portfolios.
Calvert Solution™ Strategies
...selectively invest in companies that produce products and services geared toward solving some of today's most pressing sustainability challenges, including climate change.
What is the Alternative Energy Opportunity?
The term "alternative energy" encompasses companies involved in developing technologies that reduce our reliance on traditional fossil fuels such as coal, oil, and natural gas. These companies are involved in developing: 1) new energy sources (e.g., wind, solar, bioenergy, geothermal, wave/tidal power, and small-scale hydro); 2) conservation and efficiency technologies; and 3) storage mechanisms such as fuel cells and batteries.
Because alternative energy has captured public, media, and political attention as a potential solution to the pressing issue of climate change, the prospects for alternative energy sources appear bright, and potentially profitable, over the long term.
- Calvert Global Alternative Energy Fund
- Download Calvert’s whitepaper, A Bright Future for Alternative Energy
What is the Water Opportunity?
As demand for water grows and the finite supply of this crucial resource dwindles, investors will face tough new questions about how climate change affects water and which companies are best positioned to address the future. Calvert defines the water sector as companies directly involved in various stages of the water cycle. This ranges from utility companies that supply fresh water and treat waste water to companies that make pipes, pumps, and valves. The sector also includes companies involved in engineering wastewater plants, producing environmental controls such as meters, and developing new technologies such as desalination (removing salt from sea water).
Calvert Signature™ Strategies
...only invest in companies that pass both rigorous traditional financial analysis and our most comprehensive sustainable and responsible investment criteria. With respect to the environment, these funds seek to avoid carbon-intensive companies that have more direct impacts on climate change such as utilities, extractives, and automobile manufacturers. Calvert offers investors a wide array of actively managed equity mutual funds across the asset class spectrum.
Additionally, the Calvert Social Index is a broad-based, rigorously constructed benchmark for measuring the performance of large, U.S.-based sutainable and responsible companies. The Index is a recognized benchmark reference within the sustainable and responsible investment industry. The Calvert Social Index Fund provides a passive way for investors to own a broad set of large-cap core sustainable companies.
Calvert SAGE™ (Sustainability Achieved through Greater Engagement) Strategies
...seek to engage with a variety of companies that do not meet all of our Signature Environmental, Social, and Governance (ESG) criteria. With respect to climate change, this includes those companies that could greatly reduce their own carbon emissions and/or make significant impacts in the policy and regulation debate. Through an “enhanced engagement” approach, Calvert is asking those companies to set specific and actionable climate change goals. Read more about how Calvert is pushing SAGE companies to respond to climate change.
Calvert Special Equities
Many innovative solutions to sustainability challenges like climate change come from start-up companies. Through the Calvert Special Equities Program, Calvert allocates a small portion of select fund assets toward specialized programs that support forward-thinking companies that may be considered higher-risk, but are sustainable and environmentally responsible enterprises. We hope these long-term venture capital investments will generate a greater return not only for our investors, but for future generations as well. Read more about how some of these companies are contributing solutions to the climate change challenge.
Investment in mutual funds involves risk, including possible loss of principal invested.