New ESG Fund from Engine No. 1 Leans on Activism
The managers behind the recently launched Engine No. 1 Transform Climate ETF ( NETZ ) focus on U.S. stocks that will drive the transition to decarbonize the economy. But they aren’t above working with polluters. That’s part of their DNA. Engine No. 1, the exchange-traded fund’s adviser, is a relative newcomer to environmental, social and governance (ESG) investing and advocacy. But last year, it helped to force the replacement of three members of Exxon Mobil’s ( XOM ) board with directors committed to addressing the company’s climate risks. SEE MORE The 12 Best ETFs to Battle a Bear Market Transform Climate ETF will use a similar strategy of active engagement, working as a shareholder advocate to get companies to make their operations greener. But there’s a twist: This new ETF invests in the industries that are most in need of decarbonization, including agriculture, transportation and energy. “You can’t solve a problem by running away from it,” says Engine No. 1’s head of ETFs, Yasmin Dahya Bilger. “Most climate strategies are built on the concept of divestment.
New ESG Fund from Engine No. 1 Leans on Activism
The managers behind the recently launched Engine No. 1 Transform Climate ETF ( NETZ ) focus on U.S. stocks that will drive the transition to decarbonize the economy. But they aren’t above working with polluters. That’s part of their DNA. Engine No. 1, the exchange-traded fund’s adviser, is a relative newcomer to environmental, social and governance (ESG) investing and advocacy. But last year, it helped to force the replacement of three members of Exxon Mobil’s ( XOM ) board with directors committed to addressing the company’s climate risks. SEE MORE The 12 Best ETFs to Battle a Bear Market Transform Climate ETF will use a similar strategy of active engagement, working as a shareholder advocate to get companies to make their operations greener. But there’s a twist: This new ETF invests in the industries that are most in need of decarbonization, including agriculture, transportation and energy. “You can’t solve a problem by running away from it,” says Engine No. 1’s head of ETFs, Yasmin Dahya Bilger. “Most climate strategies are built on the concept of divestment.