The services we offer investors and corporates are aligned with the Engaged Tracking (ET) Principles. The principles are designed to ensure credible results for clients in addressing climate change and sustainability challenges.
Principle 1: Keep Things Simple
- Prioritise simplicity over complexity to the greatest extent possible.
- Make the design and the goals of the Engaged Tracking Indexes easy to understand for all stakeholders.
Principle 2: Encourage Transparency & Openness
- Make the data and methodology used in Engaged Tracking Indexes transparent and independently verifiable.
- Design Engaged Tracking Rankings and Indexes to encourage greater disclosure of sustainability-related data by the companies into which investments are being made.
Principle 3: Achieve Positive Impact
- Design Engaged Tracking Indexes to drive positive change in the world.
- Take a holistic approach when considering which corporate metrics are material from an impact point of view. For example, in order to be sure that capital is being allocated away from the most carbon-intensive companies, supply chain emissions (Scope 3) need to be taken into account. Scope 3 emissions typically account for 75% or more of a company’s carbon footprint.
- Beware of unintended outcomes or of focusing on secondary issues. For example, encouraging electric vehicles may lead to lower global greenhouse gas emissions (depending on how the electricity is generated). Encouraging lower greenhouse gas emissions directly has an immediate impact. We focus on the latter.
Principle 4: Be Objective & Independent
- Use objective and science-based metrics in the Engaged Tracking Indexes.
- Use metrics that align with the principle of positive impact.
- Use metrics based on independent, internationally-accepted standards. For example, the ET Carbon Rankings are based on the Greenhouse Gas Protocol, the most widely used international accounting standard for greenhouse gas emissions accounting.
- Have the ET Carbon Rankings reviewed and approved by an independent group of respected advisors. All ET Carbon Rankings are overseen by an independent ET Quality Assurance Panel.
Principle 5: Address Systemic Risk
- Harness the collective power of investors to create incentives for companies to lower emissions and improve reporting transparency. This makes the whole system safer, not just individual investments.