The selection process: sustainable, strict & transparent
The 5 steps of our selection process
The Tomorrow Better Future Stocks include publicly listed companies only. To get selected for the fund, companies need to complete the following steps:
1. Exclusion criteria
Before anything else, it's been evaluated whether the company is active in an industry or applies practices which are on the “No Go” list. If that is the case, the company is not suitable for the Tomorrow Better Future Stocks fund.
2. Paris climate agreement
The Paris climate agreement wants to keep global warming below 2°C until 2100 compared to pre-industrial levels. For each potential company we therefore analyze by how many degrees Celsius the earth would warm if all companies in the sector operated in the same way as the screened company. To calculate this, the XDC model by right. based on science GmbH is being used.
The first step is to examine the ratio of value added to emissions. Specifically, how many emissions are produced to generate 1 million gross value added. Thereupon the procedure models the further development of emissions up to 2050 in a "business-as-usual" scenario and compares the calculated path with the targets set for the respective sector. To create comparability, it calculates how many emissions would occur if the entire world operated in this way. These calculated global emissions can be used to determine the degree of global warming.
The Tomorrow Better Future Stocks fund is overall in line with the target degree of the Paris Climate Agreement.
Learn more about the XDC Model
3. Positive criteria
To understand a company’s impact, its contribution to the UN Sustainable Development Goals is being analysed. Based on the 17 goals a list of positive criteria to assess each company's impact has been created.
4. Independent evaluation by the Impact Council
The final decision is made by an external board. Only if they agree with our evaluation that the company meets our standards, it can be included in the fund.
5. Risk management through diversity
Only when a company has passed all previous 4 steps, they are presented to our finance partner Evergreen. They evaluate whether the company is financially sustainable. To minimize the risk of the funds as much as possible, Evergreen selects shares as diversified as possible - both location- and industry-wise.
Your money has power. Use it for positive change by investing in the Tomorrow Better Future Stocks. Open your account in just a few minutes and start investing in a truly sustainable fund!
Disclaimer & risk notice: The mentioned investment products are associated with risks as the value of your investments may increase or decrease in value. You may lose your invested money. Price developments in the past, simulations or forecasts are no reliable indicator of future performance.
The text does not contain investment advice or recommendations to buy or sell. Visualizations are for illustrative purposes only and do not represent actual or future performance of the fund.
Our partner Solaris SE is the provider of all banking services. Additionally Tomorrow GmbH offers the brokerage of the Tomorrow Better Future Stocks fund as a tied agent within the meaning of § 2 para. 10 KWG in the name and for the account of Solaris SE and is entered in the public register maintained by the German Federal Financial Supervisory Authority (BaFin). The register can be viewed at portal.mvp.bafin.de/database/VGVInfo/.