ERTH aims to track the performance of an index (before fees and expenses) that comprises a portfolio of up to 100 leading global companies that derive at least 50% of their revenues from products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions. This covers clean energy providers, along with leading companies tackling green transport, waste management, sustainable product development, and improved energy efficiency and storage.

ERTH’s Index components are selected based on a list of products and services that enable CO2 avoidance across five broad strategies:

a.     Green Energy

b.     Green Transportation

c.      Water & Waste Improvements

d.     Enabling Solutions

e.     Sustainable Products

CO2 avoidance is classified into four sources:

a.     direct reduction of GHG emissions from fossil fuel energy generation or burning; 

b.     enabling avoidance via renewable energy generation;

c.     enabling of energy savings; or

d.     carbon sequestration.

Companies are then selected based on their percentage of revenue derived from these carbon avoidance sources (with a minimum revenue threshold of 50%).

Through this process, selected companies are actively supporting the process of decarbonisation, assisting in reaching the goal of approaching net-zero by 2050. 

In addition, the following negative screens are applied to all holdings based on revenue:

·        Armaments

·        Nuclear energy

·        Coal

·        Oil

·        Natural gas

·        Fossil fuel

·        Alcohol

·        Adult entertainment

·        Gambling

·        Tobacco