Global fund utilizing sustainability SRI principles

description of fund

In the 21st century and beyond, bold new thinking is required to transform our society into one that is in balance with nature. Portfolio 21 is a no load global mutual fund for individuals and institutions committed to investing in a sustainable future. We believe that companies using sustainability principles as a core part of their business strategies are positioned to prosper in the future and can be more efficient and profitable today. Portfolio 21 concentrates on companies that have made a commitment to environmental sustainability and have demonstrated this commitment through their business strategies, practices and investments.

"The future belongs to those who understand that doing more with less is compassionate, prosperous, and enduring and thus more intelligent, even competitive." --Paul Hawken


sustainable investment criteria

Portfolio 21 invests in those companies that have shown exceptional leadership in sustainable business practices. Some are changing the landscape of their industries, forcing others to catch up. Others have product lines that are ecologically superior to their competition. In fact, they use ecological principles as a driver for new product design. Others are developing vitally needed technologies to provide cleaner energy sources for the future.

Portfolio 21 companies are chosen using a rigorous screening process. First, the leaders of a company selected for consideration in Portfolio 21 must have made an explicit commitment to sustainable business practices and allocated significant resources to achieve its goals. Then, through a detailed industry profile, we identify the most critical ecological impacts and issues the company and its industry face. Next, the company is scored against criteria tailored to its industry group and is compared with its competition in such areas as the ecological aspects of its product range, the lifecycle impacts of its products and services, relationships with suppliers, investments in sustainable technologies and processes, leadership, resource efficiency, and environmental management.

We exclude companies with significant business activities in tobacco, gambling, nuclear energy, or weapons. We also exclude companies with negative performance in the areas of employee relations, human rights, community involvement, or product safety.

Companies considered for Portfolio 21 must be publicly traded and meet prudent financial requirements. Of particular interest is the composition of a company's earnings. We look most closely at earnings improvements derived from ecologically superior product lines, efficient use and reuse of resources, investments in renewable energy, innovative transportation and distribution strategies, and fair and efficient use of resources with respect to meeting human needs.

The sustainable investment criteria used to evaluate companies for inclusion in Portfolio 21 are described below. In general, the heaviest emphasis is placed on a company's products, services, investments, and leadership although it is important to note that actual weighting of scores varies based on each company and its industry. It is also important to recognize there are no completely sustainable companies in Portfolio 21. We have identified those we believe have the greatest potential and the highest commitment to work toward a sustainable future.