Effectual

Effectual has been established by the investment office Perpetual as dedicated provider for sustainable investing

Methology

We measure the sustainability of companies or investments by their sustainable return, which corrects traditional financial return by the costs and damages to society and the environment (“externalities”).

We estimate externalities using methods that have been developed and are being applied by the public sector, e.g. the U.S. Environmental Protection Agency, the EU Commission, and the World Bank. ( In Deutsch: Umweltbundesamt, EU Kommission, Weltbank) / Link zum Zeitstahlartikel

Externalities

Climate change
Air pollution
Water
Waste
Labor
Knowledge
Communities


Universe

29,000+ securities
12.000+ firms
106 countries
12 sectors, 68 industries, 224 sub-industries
[2.5mn+] data points


Advantages

Comprehensive

An intuitive metric applicable to all asset classes, core portfolios, and ESG factors, extending beyond financial models.


Objective

Grounded in an academic consensus and strong economic theory, this approach is entirely evidence-based.


Verifiable

A mathematical model with parameters from published research, based on observable data, offering simple and clear aggregation.


  • “How to avoid a climate disaster: set up an internal carbon tax.”

    Bill Gates
    Philanthropist / Founder of Microsoft

  • “The fundamental problem posed by climate change is that it isan externality.”

    Prof. William D. Nordhaus
    Yale University / Nobel Prize 2018

  • “Durch Einbeziehen von Externalitäten hat Effectual einen wissenschaftlichen Rahmen für nachhaltiges Investieren geschaffen.”

    Prof. Marco Wilkens
    Universität Augsburg / Senior Advisor to Effectual