As ESG ratings proliferate, many investors are left wondering what ratings really mean. Does it matter if my portfolio receives a B rather than an A rating, or scores 3/5 rather than 5/5?
Ethos is excited to announce our Impact Calculator, designed to show investors their tangible, real-world impact when they invest in an ETF, mutual fund, SMA, or other investment product.
The calculator makes it easy to show clients their impact in terms of metrics such as Cars removed from the road, Tuna fish saved, Months of rent paid, Factory farm animals saved, Packs of cigarettes destroyed, or Tons of plastic removed from the ocean. Ethos offers 23 optional metrics.
Ethos provides the data and setup to create the calculator for any fund or portfolio product. For each metric that you choose to include in your Impact Calculator, Ethos collects data for fund or portfolio holdings and compares the data to a benchmark of your choosing.
The output metric, such as Fewer miles driven, reflects the comparison to the benchmark and the dollar value that an investor is currently investing or considering investing in your product. For example, if a hypothetical client invests $100,000 in a fund vs. $10,000, the larger investment will scale up the number of miles avoided.
Ethos also supports integration of the Impact Calculator directly onto a website or hosted on ethosESG.com.
You can find more on the program here.