Not all fossil-free investments are created equal. Some so-called “fossil-free” funds exclude coal but invest in oil & gas, while other low-carbon funds simply reduce their fossil-fuel holdings. We believe free means zero. That’s why our fossil-free portfolios fully exclude companies engaged in the exploration, production, or distribution of energy from coal, oil, and gas.

Sustainable investing offers two ways to address fossil fuels. For broad diversification, a majority of ESG funds employ a best-of-class approach favoring companies with low-carbon footprints relative to their peers. For investors seeking to avoid fossil fuels, ESG offers fossil-free funds that fully exclude companies involved in the exploration, production, or distribution of energy from coal, oil, and gas.

Widespread demand for ESG and fossil-free options has created a dramatic rise in greenwashing—especially by new funds claiming to be fossil-free or carbon-free. True fossil-free funds have a sustainability mandate and fully exclude all three types of fossil fuels: coal, oil, and gas. To know whether your fund contains fossil fuels, check out www.fossilfreefunds.org.