Fossil Free Indexes FAQ

What is Fossil Free Indexes?

Fossil Free Indexes LLC is a company that delivers research, consulting and investment solutions to investors concerned about climate and environmental risk.

What is the Carbon Underground 200TM?

The Carbon Underground 200TM is a list of the 100 largest public oil and gas and the 100 largest public coal companies globally, as measured by the potential CO2 emissions of their reported fossil fuel reserves. The list is based on proprietary research published on our website. It is updated quarterly and serves as the basis for a negative screen on the S&P 500 to create the FFIUS Index, a fossil free index launched in June, 2014. History back to 2004, quarterly updates and security identifiers are available to subscribers.

How does the Carbon Underground 200TM relate to the Carbon Tracker 200?

The Carbon Tracker 200TM is a historical list of the 100 largest public oil and gas and 100 largest public coal companies published in 2011 by the UK-based research organization Carbon Tracker based on 2010 data. The Carbon Tracker 200 includes many companies that are no longer investable or no longer would qualify for the list. The Carbon Underground 200 was published first in April 2014 based on 2013 data, and has been updated quarterly since. The high level concept of both lists is the same – they are rankings of public companies based on the CO2 emissions embedded in reported reserves.

Because it includes 97% of all fossil fuel reserves and related CO2 emissions potential of public companies globally, The Carbon Underground 200, has been used as a negative screen by investment advisors for investors who want to avoid exposure to firms substantially engaged in the exploration and extraction of fossil fuels.

I’m an individual investor. What can I do with The Carbon Underground 200TM list myself?

There are no fees or restrictions on use of the list by an individual either in research or, as is increasingly popular, to support a personal divestment strategy.

I’m an asset manager. Can I download the list for research or to help my clients understand their exposure or for use as part of an investment strategy or process?

No, the annual list is only available for free download by asset owners and divestment campaigners. Use of the list by asset managers and consultants is only permissible with a paid subscription. Please contact us at info@fossilfreeindexes.com if you are interested in a subscription or require further information.

I’m an asset manager. How can I get an updated Carbon Underground 200 list with security identifiers to screen my clients’ portfolios on an ongoing basis?

Licenses to the Carbon Underground 200 for use by institutional asset managers are available from Fossil Free Indexes, including quarterly updates, 10 years of history, and security identifiers for ease of use. The list available online must be licensed for any commercial usage.

What is FFIUS?

FFIUS is Fossil Free Indexes US, a version of the S&P 500 negatively screened for The Carbon Underground 200. It is rebalanced quarterly on the same schedule as The Carbon Underground 200 update and the S&P 500 quarterly rebalance. At rebalancing the contribution of any index constituent is capped at 1.25%.

I’m an individual investor, how can I invest in FFIUS?

Parametric Portfolio Associates offers its institutional and high net worth investors the option to invest in separate accounts based on FFIUS.

I’m an institutional investor, how can I invest in FFIUS?

Parametric Portfolio Associates offers its institutional and high net worth investors the option to invest in separate accounts based on FFIUS.

I’m an institutional investor, how can I invest in a fund or ETF strategy or custom index that has been screened to remove all Carbon Underground 200 companies?

There are over 20 asset managers who manage funds, separate accounts and hedge funds that use the CU200 to screen fossil fuel companies. Please see our list of Partners or contact us directly for more information. .

I’m an individual investor, how can I invest in a fund or ETF strategy or custom index that has been screened to remove all Carbon Underground 200 companies?

Parametric Portfolio Associates offers institutional high net worth clients custom indexes screened by The Carbon Underground 200. Spinnaker Trust offers high net worth clients ETF strategies screened by The Carbon Underground 200. Individuals can also go to FossilFreeFunds.org to screen mutual funds against The Carbon Underground 200.

How does Fossil Free Indexes relate to 350.org and Divest/Invest?

Fossil Free Indexes is not affiliated with either organization. However, 350.org has adopted the Carbon Underground 200 as the official list for the divestment movement. Divest/Invest makes the Carbon Underground 200 available on its website as part of its Individual and Philanthropy campaigns to encourage both high carbon divestment and low carbon investment.

Is Fossil Free Indexes an NGO or a for-profit company?

Fossil Free Indexes operates as a for-profit corporation. Its products and services have been embraced by several NGOs whose primary mission is the advocacy of responsible investing in relation to climate risk. Fossil Free Indexes’ products and services are viewed by these groups as both aligned with and supportive of their mission.

How does your business model combine a profit motive with societal good?

We firmly believe that the two concepts, economic success and the advancing of societal good, should go hand in hand, rather than being in conflict. Our team is motivated to achieve career success while working in an area in which we are passionate, knowing that our work benefits future generations. Fossil Free Indexes’ values include an acknowledgement of the obligation of environmental stewardship and a belief in the value of responsible investing to influence capital flows toward sustainable development. We have chosen to devote ourselves at the outset to providing solutions for investors concerned both about climate risk and financial risks to their portfolios.

 

Disclaimer:Fossil Free Indexes LLC and its third-party data providers and licensors do not guarantee the accuracy, completeness, timeliness or availability of the information contained herein. Nothing in this document shall constitute financial or investment advice, or an offer to buy or sell, or a promotion or recommendation of any security, financial instrument or product or trading strategy.

Mentioned above are investment advisers who have executed licenses for our index and research products. This information is provided for informational purposes only and is not a recommendation of, or solicitation for, any of the advisers listed. Our arrangements with these investment advisers do not include compensation for referring investors. However, the licensing fees we receive may be based on the volume of business they do using our products.