Are you an Eco Warrior Sustainable Saver?
9 June, 2022
Sponsored by M&G
Eco Warriors are a force for change in the natural world. Armed with their savings and their conscience, they invest in green companies and tackle environmental issues like the climate crisis, carbon neutrality and renewable energy. All while aiming to grow their savings too.
1.8 million savers and investors in the UK
Mostly younger (25-34)
More women than men
More than half…
✓ Limit single use plastic
✓ Reduce food waste
✓ Shop locally
More than a third…
✓ Cut down on meat
✓ Buy from sustainable brands
✓ Shop second hand
✓ Cut down travel carbon
Funds suggested by Morningstar
We work with global research firm Morningstar who supply us with data every three months. We then map the funds to each type of investor and their stated preferences.
The Eco Warriors funds
Have an overall Morningstar rating of 4 or 5 stars (out of 5).
Have a High and Above Average Morningstar Sustainability Rating.
Have a Carbon Risk Score of under 10 - this score maps the overall carbon impact of the investments held, their supply chains etc.
Sustainable Investment – Environmental Sector Overall - These are non-diversified funds that invest in environmentally-oriented industries, such as renewable energy or water.
Available on major retail platforms for purchase.
So, which funds are the best performers?
Below are the best-performing Eco Warriors funds. Click on each fund to be redirected to Morningstar-hosted factsheets, where you can read their technical research view and assess a fund's sustainability rating and its Environmental, Social and Governance scores.
What do these terms mean?
Carbon risk score
In layman's terms, this measures the carbon risks of a fund. Funds with lower carbon risk scores will have less exposure to fossil fuels and/or include companies that are reducing their carbon emissions in line with the Paris Agreement.
This is when you convert the returns of an investment into a yearly rate. For example, if one fund generates 2% returns during the first three months of 2022, that would convert to an annualised return of 8%, whereas a fund generating 5% returns over a six-month period would convert to an annualised return of 10%.
Morningstar Sustainability Rating
This measures the environmental, social and corporate governance (ESG) of about 20,000 mutual fund and exchange-trade funds. It is considered a reliable metric for measuring the sustainability profile of a fund's underlying holdings.
Interested in sustainable investing but not sure if these funds are right for you?
Maybe you're one of the below!
Figure out where you might fit in. Click on each link below to learn more and discover the best-performing funds.
Pure Returns - You want to grow your savings as much as possible but you don't necessarily want to rule out sustainable investments, which can sometimes outperform the rest of the market.
Future Focus - You champion positive, long-term change and put the impact of your investments first, returns second.
No Nasties - You won't invest in anything that causes harm, like tobacco or weapons. Grow your savings with peace of mind.
Diligent Savers - You think sustainable investments can stand the test of time and are interested in supporting reputable companies.
Moderate Greens - You're investing to prepare for your financial future and welcome opportunities to have a positive impact while you save.
To learn more about sustainable investing in general, check out our Sustainable Savers guide.