Engaged Tracking

Engaged Tracking is a mission-driven organisation dedicated to helping investors and corporates identify, understand, and manage sustainability-related risks and opportunities.

Today, Engaged Tracking produces the most comprehensive public corporate ranking of the world’s largest listed companies according to the carbon intensity of their activities. In 2018, Engaged Tracking will expand its rankings beyond carbon to cover other major sustainability themes such as water usage.

Engaged Tracking provides institutional investors with portfolio analytics tools. Today, these tools enable investors to analyse their exposure to carbon and climate-related risks. In 2018, Engaged Tracking will incorporate other sustainability metrics into its analytics offering.

Engaged Tracking produces low-carbon and fossil-free indexes that can be used by investors as benchmarks for existing funds or to create low carbon investment strategies. The first ET Global 1600 Fossil Free Low Carbon ETF will be available from September 2017. From 2018 Engaged Tracking will offer additional sustainability indexes.

Engaged Tracking is supported by family office investors and Climate-KIC, the European Union’s main climate innovation initiative. For more information or to view the public ET Carbon Rankings, please visit engagedtracking.com.

Social & Environmental Impact

Engaged Tracking is a mission-driven organisation with the aim of mitigating the worst effects of climate change by reducing corporate greenhouse gas emissions. Engaged Tracking addresses this systemic risk issue in a systematic way. The system pioneered by Engaged Tracking comprises two core elements:

1. The ET Carbon Rankings – which rank the world’s largest listed companies according to their greenhouse gas emissions efficiency.

2. The ET Low Carbon & Fossil Free Index Series – a series of stock market indexes in which companies are weighted according to their position in the ET Carbon Rankings.

Engaged Tracking indexes provide a tool for investors to reduce their exposure to carbon while closely tracking the performance of the market, in the same vein as traditional stock market indexes, such as the FTSE 100.

By virtue of linking a public carbon ranking of companies to a series of indexes, this approach also provides a mechanism through which capital can be shifted from carbon-intensive to carbon-efficient companies, providing an incentive for all companies to improve their carbon-efficiency in order to gain a greater weighting within the index.

The key benefits to all investors of the Engaged Tracking strategy are the two intended outcomes of ET Carbon Rankings:

1. Increased disclosure: greater disclosure of material carbon information helps all market participants correctly price risk and is designed to reduce sudden destabilising revaluations.

2. Lower emissions: this reduces the systemic threat multiplying effect of climate change, which is good for stability and, therefore, investor returns.

Engaged Tracking Impact Report