A Smarter Approach to Fossil Fuel Divestment
Balancing Financial Performance and Fiduciary Duty
A Smarter Approach to Fossil Fuel Divestment
The Strategy uniquely addresses both the supply side of fossil fuel energy generation through fossil fuel divestment, while addressing the demand side of fossil fuel energy consumption by reallocating the active divestment risk to the most highly correlated Resource Efficient companies across the whole economy.
Strict Environmental Screens
- Exclude companies with >5% of their revenues from fossil fuels or nuclear power (subject to re-inclusion policy).
- Exclude companies with any ties to thermal coal or oils sands usage
- Exclude companies in breach of any of the 10 principles of the UN Global Compact
Environmental Footprint
The Osmosis Resource Efficiency Signal generates a significant reduction in the environmental footprint of our ex-Fossil Fuels Strategy relative to the MSCI World benchmark (as at end Dec 2024):
What is Resource Efficiency?
In the absence of consistent environmental reporting standards, Osmosis has pioneered a proprietary approach to the standardisation of unstructured corporate environmental data. Our in-house research team are sector specialists and utilise decades of environmental experience to standardise carbon, water and waste data to environmental economic frameworks, within 34 independent sectors.
Our Core Equity Range
Resource Efficient Core Equity
Our flagship Strategy was developed to reduce the environmental impact of a client’s core passive holding, while managing the active risk that’s brought into the portfolio.
Resource Efficient Core Equity ex-Fossil Fuels
Excludes companies with a material involvement in (i.e. deriving greater than 5% of their revenues from) the fossil fuels industry or nuclear power generation.
Resource Efficient Core Equity ex-Fossil Fuels Australian Trust
Excludes companies with a material involvement in (i.e. deriving greater than 5% of their revenues from) the fossil fuels industry or nuclear power generation.