Climate and governance criteria added to Responsible Ratings Index

ESG Clarity adapts index to bring in additional sustainability elements, altering top 25 funds


Lottie McGurk

In the three years we have been running the Responsible Ratings index (RRI) a lot has changed. What constitutes an ESG fund, as well as investor preferences for sustainability criteria, has adapted and most investors are now looking for more than an ESG rating. With that in mind, we have updated our criteria to bring in additional sustainability elements.

First, using MSCI data, we are looking at whether funds are aligned with global temperature goals. Based on both reported and estimated Scope 1 and 2 carbon emissions, MSCI measures the carbon responsibility, efficiency and exposure attributed to an index or fund, and calculates alignment or misalignment, which we have incorporated into our RRI five-point scoring.

We are also looking at fund exposure to ESG risks, such as climate risk; UN violations of the Global Compact; and controversies, as assessed by MSCI’s ESG Controversies methodology, which may be related to the environment, customers, human rights, labour rights or governance.

Finally we have looked at board construction, both in terms of independence (the percentage of independent members) and gender diversity.

Click here for an analysis of the top funds in this ESG Clarity’s October 2023 digital magazine.

NamePosition RRISize (£bn)Global categoryTemperatureClimate transition risk and opportunities exposureBoard independence best practice alignmentBoard diversity best practice alignmentUNGC violations exposureRed flag controversies exposure
Brown Advisory US Sust Gr 145.003.6US Equity Large Cap GrowthAlignedLow81%34%00
BNY Mellon Mlt-Asst Balanced 145.002.8Aggressive AllocationMisalignedModerate81%39%1 (0.7%)1(0.7%)
BNY Mellon Mlt-Asst Growth 135.002.1Aggressive AllocationMisalignedModerate80%37%2 (1.3%)2 (1.3)
BlackRock Continental Euro 195.001.2Europe Equity Large CapMisalignedVery Low79%41%00
Comgest Growth Europe NEW5.004.5Europe Equity Large CapMisalignedModerate76%41%00
TB Evenlode Income NEW5.003.3UK Equity Large CapAlignedLow79%43%00
Jupiter Asian Income NEW5.001.3Asia ex-Japan EquityMisalignedModerate77%27%1 (4.8%)1 (4.8%)
Wellington Global Stewards NEW5.001.2Global Equity Large CapAlignedLow83%38%00
MS INVF Global Brands 65.0017.7Global Equity Large CapAlignedLow83%40%00
Pictet – Global Envir Opps NEW5.006.5Global Equity Large CapMisalignedModerate80%37%00
Schroder ISF Glbl Sust Gr NEW5.004.1Global Equity Large CapAlignedLow80%35%00
Nordea 1 – Alpha 10 MA 65.003.8MultialternativeNALow81%37%00
Nordea 1 – Alpha 15 MA 65.003.5MultialternativeNALow80%37%00
CCLA COIF Charities Investment 45.003.4Aggressive AllocationMisalignedModerate81%32%00
RobecoSAM Smart Energy Eqs NEW5.003.4Energy Sector EquityMisalignedModerate81%32%00
Robeco Sust Global Stars Eqs 45.002.8Global Equity Large CapMisalignedLow82%36%00
MS INVF Global Quality NEW5.001.8Global Equity Large CapAlignedLow82%38%00
Morgan Stanley UK Global Brands 35.001.1Global Equity Large CapAlignedLow83%40%00
KBI Global Energy Transition NEW5.001.1Energy Sector EquityMisalignedHigh82%34%00
MFS Meridian Prudent Wealth NEW5.002.5Moderate AllocationAlignedLow73%32%00
Fidelity Asia Pacific Opps NEW5.001.8Asia ex-Japan EquityMisalignedModerate71%28%00
Fidelity Asia Pacific Opps NEW5.001.7Asia ex-Japan EquityMisalignedModerate71%28%00
SUTL Cazenove Charity Sust MA NEW5.001.5Aggressive AllocationMisalignedModerate68%20%00
Fidelity Sustainable EM Eq NEW5.001.3Global Emerging Markets EquityMisalignedModerate68%20%00
Schroder ISF Hong Kong Eq 65.001.2Greater China EquityMisalignedModerate59%22%2 (0.1%)2 (0.1%)


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