The Power of Positive Investing
Earth Equity Advisors’ Signature individual stock portfolio series
DeCarbonizing the Economy
In 2012, Earth Equity and its CEO, Peter Krull, became a pioneer in the investment industry by offering the Green Sage Sustainability Portfolio. It was one of the first portfolios of its kind, giving clients the opportunity to invest in a sustainable new economy.
In 2021, Pete seized the opportunity to create a specialty portfolio that helps clients invest in companies specifically working to decarbonize the economy. This portfolio would be a less diversified, more focused version of the Green Sage Sustainability Portfolio, but constructed using a similar investment philosophy. And in January of 2022, the Green Sage DeCarb Portfolio was born.
What Makes this Portfolio Special?
Earth Equity focuses on positive investing — always asking the question, “what do we WANT to own?” Historically, responsible investing has focused on exclusion, and while we do exclude all companies involved in the fossil-fuel industry, that’s where the similarities end.
What Do You WANT to Own in a Decarbonization Portfolio?
- Fossil-free energy – solar, wind, geothermal
- Energy efficiency
- Energy storage
- Green transportation
- Sustainable real estate
- Alternatives to fossil fuel products
- Regenerative agriculture
- Recycling and circular economy
- Plant-based foods
- Reallocation of financial assets
- Green building technology
- Universe of 220 global companies
- Benchmarked against the MSCI All Cap World Index
- 50-75 stocks
- Must be focused on decarbonizing the economy
- No more than 4 stocks per sub-sector
- Minimum 30% of companies domiciled outside of the USA
- Companies cannot be involved in extraction, processing or transportation of fossil fuels
- At least 50% of companies must be profitable
- Stocks must be liquid and trade at least 2000 shares per day
- Approximately 50% of stocks are large-cap, 30% mid-cap and 20% small cap
- Market cap weighted
- Jan 1 rebalance can replace up to 100% of portfolio
- July 1 rebalance can replace up to 30% of portfolio
- We utilize research data from multiple sources, including Morningstar and Sustainalytics