Active Screen: Your active screen can be customized by choosing from Carbon Underground 200™, Filthy 15, Coal, Oil/Gas, and Utilities. When you adjust your screen, Fossil Free Funds will recalculate the number of holdings and percent of fund assets values that have been flagged for the fund based on the fossil fuel categories you've selected.
Badge Rating: For each of the five fossil fuel categories, a fund can earn a green badge if it is clean for that cateogory. For instance, if a fund was not invested in any of the Carbon Underground 200 companies, it would earn a green badge for Carbon Underground 200. The cleanest funds will earn five badges, indicating none of their holdings were flagged by any of the five fossil fuel categories.
Non-Diversification Risk: All investments carry some level of risk, but diversifying your investments can help protect you from volatility. Typically, the mutual fund prospectus will note if there is non-diversification risk associated with the fund, which means that a large amount (five percent or greater) of assets might be allocated to one or more securities or sectors.
Number of Holdings Flagged: Mutual funds can own a varying number of holdings, from less than 100 to many thousands. The number of holdings flagged value is the total number of holdings in a fund that have been flagged as fossil fuel stocks, based on the active screen. This number may change when the screen is adjusted to include different fossil fuel categories.
Percent of Fund Assets Flagged: Mutual funds invest more in some holdings and less in others. The percent of fund assets flagged value measures how much of the fund's money is invested in fossil fuel stocks, based on the active screen. This number may change when the screen is adjusted to include different fossil fuel categories.
Percent of Fund Assets Screened: Fossil Free Funds screens portfolios for stock holdings and looks up the industry of the issuing company. Bonds, short postions, and other non-equity security types are not screened. A fund’s percent of fund assets screened is equivalent to the percent of the fund that is invested in equities that can be screened.
A fund with a lower percent of fund assets screened may have more fossil fuel investments that Fossil Free Funds can't account for. A fund must have at least some of its assets invested in stocks to be included in the Fossil Free Funds database.
Socially Responsible Fund: Socially responsible funds may make investments based on such issues as environmental responsibility, human rights, or religious views. A socially conscious fund may take a pro-active stance by selectively investing in, for example, environmentally-friendly companies, or firms with good employee relations. This group also includes funds that avoid investing in companies involved in promoting alcohol, tobacco, or gambling, or in the defense industry.
Carbon Underground 200™: The Carbon Underground 200™, compiled and maintained by Fossil Free Indexes℠, identifies the top 100 public coal companies globally and the top 100 public oil and gas companies globally, ranked by the potential carbon emissions content of their reported reserves.
Carbon Underground 200 is an option to customize your screen. Selecting this will flag any Carbon Underground 200 holdings in the fund.
Filthy 15: The Filthy 15 are some of the largest, dirtiest coal mining companies and coal-fired utilities in the U.S. These companies are jeopardizing public health, damaging the environment, and placing an unfair burden on low-income and minority communities.
Filthy 15 is an option to customize your screen. Selecting this will flag any Filthy 15 holdings in the fund.
Coal: As defined by Morningstar’s Global Equity Classification Structure, companies in the coal extraction industry.
Coal is an option to customize your screen. Selecting this will flag any coal holdings in the fund.
Oil/Gas: As defined by Morningstar’s Global Equity Classification Structure, companies in the oil/gas industry, including drilling, E&P, pipelines, and oil field services.
Oil/Gas is an option to customize your screen. Selecting this will flag any oil/gas holdings in the fund.
Utilities: As defined by Morningstar’s Global Equity Classification Structure, companies in the utilities industry, including coal-fired and natural gas-fired utilities.
Utilities is an option to customize your screen. Selecting this will flag any utilities holdings in the fund.