Lonsec Sustainability Score
Ratings group Lonsec has launched a sustainability score which aims to provide a quantitative estimate of the net ‘goodness’ in a portfolio.
The score is a relative ranking and funds can be awarded one, two, three, four or five bees, depending on their 'goodness'.
Lonsec has partnered with sustainability data provider Sustainable Platform to provide the score. The underlying holdings of a portfolio are compared against the United Nations’ 17 Sustainable Development Goals (SDGs), and also screened against ten controversial industries.
Lonsec stresses that the score does not constitute a rating in itself and should be used with a regular Lonsec Rating.
Initially, sustainability score reports will be available for the funds that were previously covered within Lonsec's Responsible Investment category. Scores will then be made available to other funds contingent on them nominating for assessment.