Climate change is already having devastating effects on the planet and human health. The acceleration in sea level rise increases flooding risks to coastal properties and communities living in low-lying areas. Higher temperatures lead to hotter, drier forests, priming them for wildfires. Hurricanes, droughts, storms, and heat waves have all become more intense and severe. These changes put natural and human landmarks at risk, but also threaten public health, and the water, electricity, and food supplies that humans depend on.
Greenhouse gasses cause climate change by trapping heat below the atmosphere. Humans have both increased the production of greenhouse gasses and reduced the capacity of the environment to absorb them, especially in the last few centuries of intense industrialization. All industries contribute to greenhouse gas emissions, particularly energy, agriculture, and transportation. But there is high variance in carbon emissions performance within each industry, creating both leaders and laggards across the economy.
OpenInvest sources data on Scope 1 (direct GHG emissions), Scope 2 (indirect GHG emissions), and Scope 3 emissions (GHG emissions in the supply chain.) Companies are then ranked against sector peers. OpenInvest invests in sector leaders (those with the lowest carbon emissions relative to sector peers) and divests the laggards (those with the highest emissions relative to sector peers). OpenInvest also overweights companies lobbying in favor of global climate policy, those setting corporate GHG targets based on a 2-degree scenario, and those committed to sourcing 100% renewable energy. OpenInvest divests those lobbying against a global policy approach to climate change.