The free digital educational resource launches during Financial Literacy month on the heels of the IPCC’s sixth climate assessment report
SAN FRANCISCO, CA - April 12, 2022 - Carbon Collective, the first online investment advisor 100% focused on solving climate change, announces the launch of its book-length Ultimate Guide to Sustainable Investing to increase the individual investor’s awareness and ability to solve climate change through sustainable investing decisions. The launch of the guide follows the International Panel on Climate Change’s (IPCC) sixth climate report, which found that, “while financial flows are a factor of three to six times lower than levels needed by 2030 to limit warming to below 2°C (3.6°F), there is sufficient global capital and liquidity to close investment gaps. However, it relies on clear signaling from governments and the international community, including a stronger alignment of public sector finance and policy.”
“We know what we need to do to accelerate the energy transition: divest from fossil fuels and reinvest in climate solutions and renewable energy. The recent IPCC report confirms the urgency of this action” said Zach Stein, co-founder of Carbon Collective and the primary author of the Ultimate Guide to Sustainable Investing. “Not only do we provide great detail in the guide for thinking about education, but we provide data tables that show that most sustainable portfolios available to retail investors don’t deliver on the promise of being truly sustainable.”
Domestically, U.S. sustainable funds grew by nearly $70 billion in 2021, a 35% increase over 2020’s high-water mark, according to Morningstar . At the same time, Morningstar removed the environmental, social and governance (ESG) tag from 1,200 funds representing over $1 trillion, due to analysis that found that they were not delivering on stated ESG goals. This confusion leaves retail investors who desire to invest sustainably unclear on who to trust and how to make investment decisions. With the launch of the Ultimate Guide to Sustainable Investing, Carbon Collective seeks to provide a clear and concise roadmap for investors who are interested in sustainable investing and explain why investment is critical to solving climate change, why investments like retirement accounts matter, and how to analyze the existing ecosystem of options and differentiate the truly green from the green-washed.
One of the guide’s key findings is sustainable investing may outperform traditional index investing over the next 30 years as we rapidly invest and scale solutions that solve the greatest challenge to humanity.
The guide includes six chapters that address:
- Why Investing Is the Only Realistic Path to Solving Climate Change
- Why Your Retirement Fund Matters for Climate Change
- Why Sustainable Investing May Outperform
- Database and Analysis of Sustainable Investment Portfolios
- How to Be a Smart Investor
- It’s Time to Start Investing Sustainably
“One of the recurring themes of financial literacy month is that we weren’t taught enough about finances, investing, and taxes when we were younger,” said Brooke Tomasetti, director of financial education at Carbon Collective. “Investing is key to building long-term wealth and has been proven to be crucial to solving climate change. We need to remove all barriers and increase financial illiteracy, if we are to solve this daunting problem. It’s also why we made the guide free, on our website, so people could access it as easily as possible.”
The guide follows the launch of Carbon Collective’s inaugural Climate Index in 2021 and the employer 401(k) plan for businesses, offered in March of 2022. It is part of the company’s overarching theory of change of divesting from industries that rely on fossil fuels, reinvesting in companies building climate solutions, and pressuring companies to decarbonize faster.
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About Carbon Collective
Home of the Climate Index, Carbon Collective is the first 100% climate focused online investment advisor with the mission to close the annual $5 trillion dollar climate investment gap. By divesting portfolios from fossil fuels, and reinvesting that same allocation in climate solutions, Carbon Collective makes investing in climate solutions accessible to all with low fee, zero minimum, highly diversified portfolios, with 85% fewer emissions. The Company augments its investment strategy with shareholder advocacy, leveraging member’s votes to advocate for corporate climate action. Founded by Zach Stein and James Regulinski, and backed by prominent venture capital firms like Precursor Ventures and My Climate Journey, Carbon Collective is out to disrupt the finance industry and solve climate change.
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