Ethos Foundation has today published its “positive impact methodology” to help investors identify companies whose business model has a positive impact on the environment and society.
Ethos has listed 10 topics grouping activities that have a positive impact on environment and society. It considers education and health as prerequisites for a healthy and peaceful society, it said.
The 10 topics include health and wellbeing, education, training and culture, low-carbon mobility, circular economy, pollution control, resilient agriculture, sustainable water management, sustainable energy, sustainable real estate and sustainable finance.
Ethos aims to identify companies making a significant contribution to improving health and especially access to health services, for example, companies managing hospitals or firms developing and distributing generic medicines, without harming society or the environment.
Based on the new methodology, investors would pick companies generating revenues from public early childhood, primary, secondary and tertiary education, public or private adult education and teacher training, or companies producing energy for renewable sources.
Ethos does not consider nuclear energy as having a positive impact, as it is not renewable and it does not respect the principle of harmlessness in terms of risks and waste treatment, it said in the document.
In terms of circular economy, business models contributing to keep products in use for as long as possible or whose products and/or services consist of at least 17% reused components, both in terms of their inflow and outflow, are aligned with Ethos’ methodology.
The foundation believes it is necessary to redirect capital flows towards sustainable activities to limit global warming, in line with the goals set by the Paris Agreement.
Companies whose revenues are derived from sustainable lending products are aligned with Ethos’ positive impact methodology.
Swiss Sustainable Finance sets up TNFD consultation group
The Swiss Sustainable Finance (SSF) association has set up a consultation group in Switzerland on the Taskforce on Nature-related Financial Disclosure (TNFD) in partnership with UN Global Compact Network Switzerland & Liechtenstein (GCNSL), it has announced today.
SSF´s chief executive officer Sabine Döbeli said: “By setting up the Swiss TNFD consultation group, Swiss Sustainable Finance is laying the groundwork with the intention of raising awareness of the topic within the financial services industry and supporting stakeholders in performing the necessary risk assessment.”
According to the partners setting up the consultation group, companies and the broader financial industry lack data to understand the impact that the biodiversity loss can have on business activities and the resulting financial risks over the long-term.
Antonio Hautle, executive director of GCNSL, added: “The purpose of local TNFD consultation groups is to raise awareness of the TNFD’s work and increase the number of institutions providing feedback on the beta version of the framework – through pilot testing as well. Over the longer term, local consultation groups play a pivotal role in disseminating the TNFD framework.”
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