Climetrics is a climate rating that provides a holistic assessment of a fund’s climaterelated risks and opportunities. It independently rates thousands of actively managed funds and ETFs and its ratings are free-to-search, providing investors with transparency on climate change-related risks when comparing funds. It uses data and research from CDP, ISS ESG and other sources. The ratings are calculated using the database of CSSP AG/yourSRI.com for fund information.
What Climetrics measures
Climetrics measures how well companies in a fund’s portfolio disclose and manage material risks and opportunities linked to climate change, water security and deforestation which are key climate-related concerns for financial markets.
Climetrics also considers funds’ ESG investment policy and the level of public action taken by the asset manager to support global transparency and engagement initiatives around climate change.
The rating follows a best-in-universe approach, meaning that each fund is compared to thousands of other funds in the available universe. As such, Climetrics rates funds for how well they are positioned for the transition towards a low carbon, more climate resilient economy.
Relation to existing climate disclosure frameworks
The Climetrics methodology is strongly aligned with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). It integrates TCFDaligned CDP scores for companies in its evaluation of portfolio holdings, and tracks asset managers’ TCFD-based reporting through the PRI reporting framework.
The integration of water security and deforestation data in the Climetrics rating is consistent with the emphasis on natural capital disclosure in the EU’s guidelines for reporting climate-related information and the Climate Disclosure Standards Board framework (CDSB).