We're excited to announce that CHGX (Change Finance US Large Cap Fossil Fuel Free ETF) is the first Certified Carbon Neutral fund on Ethos.
With the urgency of addressing climate change, mutual funds and ETFs have an important role in helping to finance the transition to a sustainable economy. Ethos applauds Change Finance for its commitment to measurable carbon neutrality and for raising the bar on climate impact for ETFs or mutual funds.
Through the Carbon Neutral Certification process, Ethos performs an independent analysis of a fund’s carbon footprint and carbon credits (offsets) to verify whether the fund is carbon neutral during a specified period.
The carbon footprint consists of verified Scope 1 and Scope 2 emissions of every holding of the fund. Verification includes widely-used statistical methods such as linear regression to compare company self-reported emissions to peers and expected emissions.
Carbon credits require proof of purchase from a reputable, approved carbon credit provider. CHGX carbon offsets are purchased from Grassroots Carbon.
You can read more about the Ethos' Carbon Neutral Certification methodology here.
If you or your clients want to take an additional step of verifying that your investments are carbon neutral, use independently-certified information such as Ethos. You can find certified carbon neutral funds and top-rated funds for Climate Action on the Ethos platform.
If you are a mutual fund or ETF and interested in becoming certified as carbon neutral, reach out to Ethos at support@ethosESG.com.