Fossil Free Investment Funds

In this guide we investigate, score and rank the environmental and ethical record of 13 fossil-free investment funds.

We also look at renewable energy investments, carbon divestment and tax avoidance and give our Best Buy recommendations.

About Ethical Consumer

This is a product guide from Ethical Consumer, the UK's leading alternative consumer organisation. Since 1989 we've been researching and recording the social and environmental records of companies, and making the results available to you in a simple format.

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What to buy

What to look for when choosing a fossil-free fund:

  • Is your investment fund fossil free? To create this guide we used the, which allows anyone to easily access information on investment funds’ fossil fuel holdings.


Subscribe to see which companies we recommend as Best Buys and why 

What not to buy

What to avoid when choosing a fossil-free fund:

  • Is the company a tax avoider? Many of the companies in this guide have been marked down for the likely use of tax avoidance strategies.

Subscribe to see which companies to avoid and why

Score table

Updated live from our research database

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Brand Score(out of 20) Ratings Categories Positive Scores

Our Analysis

There is about £15 billion invested in green and ethical funds in the UK. However, this is only about 1.2% of the amount invested in ‘mutual funds’ as a whole, a figure that hasn’t budged for a decade.

This lack of take-up is sad, especially considering the number of studies that have now been done comparing the financial performance of ethical and non-ethical funds. Because overall, the evidence suggests that ethical funds don’t do any worse financially.

Carbon-divested funds are much newer and so it is harder to know how they are likely to do. And yet an analysis of the five years prior to 2015 suggested that investors who dumped holdings in fossil fuel companies actually outperformed those that did not.

Our research

To create this guide we used an American website called, which allows anyone to easily access information on investment funds’ fossil fuel holdings.

The website awards 5 fossil free ‘badges’. They are:

  • Free of the Filthy 15 (a US-focused list of the top 15 carbon-emitting US coal companies)
  • Free of the Carbon Underground 200 (a list of the top 100 global coal companies and the top 100 oil and gas companies, ranked by the potential carbon emissions content of their reported reserves. The list is maintained by Fossil Free Indexes)
  • Free of all Coal Industry
  • Free of all Oil/Gas Industry
  • Free of Fossil-Fired utilities.

Carbon divestment lists six UK investment funds that are both socially responsible and fully fossil free, thus being awarded all 5 divestment ‘badges’. They are:

  • Henderson Global Care Growth
  • Royal London Sustainable World
  • Old Mutual Ethical
  • Sarasin EquiSar Socially Responsible
  • 7IM Sustainable Balance
  • Alliance Trust Sustainable Future European Growth

In addition the AXA Ethical Distribution Fund is now also fossil free but as of June 2016 was yet to be listed as such on the Fossil Free Funds website.

The other funds we rated on the table are not 100% fossil free. We included them in the list, however, as they are pretty close and have other positive features such as investing strongly in renewable energy, being rated by Castlefield as an ethically strong fund, or being in ShareAction’s list of most ethically engaged providers (see our guide to Ethical Funds).

The investments of the funds that are not 100% carbon divested, taken from on 9th May 2016, are listed on the table below.

Mainly fossil-free funds

Fund name Remaining fossil fuel investments  Investment type 
 FP WHEB Sustainability  Has 1.36% of fund assets invested in China Longyuan Power Group Corp Ltd and 0.98% of fund assets
invested in Hera SpA 
Fossil Fired Utilities
 F&C Responsible Global Equity  Has 1.09% of fund assets invested in Spectra Energy Corp
Oil and Gas industry
Jupiter Ecology  Has 1.08% of fund assets invested in China Longyuan Power Group Ltd and 0.56% of fund assets
invested in Greenko Group
Fossil Fired Utilities
ConBrio B.E.S.T. Income Has 4.57% of fund assets invested in National Grid PLC and 3.57% of fund assets invested in SSE PLC Fossil Fired Utilities
Impax Environmental Markets Has 1.61% of fund assets invested in ENN Energy Holdings Ltd and 0.58% of fund assets invested
in Greenko Group PLC
Fossil Fired Utilities
Quilter Cheviot Climate Assets

Has 3.33% of fund assets invested in National Grid PLC

Fossil Fired Utilities

The ConBrio B.E.S.T. Income Fund had the highest level of fossil fuel investment out of those we looked at. However, the company told us that it tries to combine negative and positive approaches, and that it invests in SSE plc despite its involvement in fossil fuels because of its significance in the wind power industry and transitioning the UK towards renewable energy.

Carbon divested funds: financial performance (updated bi-monthly)

Carbon divested fund 5 year cumulative performance to 29/01/2021 Ethiscore as of 09/2020
Janus Henderson Global Sustainable Equity Fund 164.9 7
BMO Reponsible Global Equity 139.5 10.5
WHEB Sustainability 111.4 16
Triodos Pioneer Impact 110.0 16
Jupiter Ecology 103.4 6.5
EdenTree Amity International 86.6 7
Quilter Cheviot Climate Assets* 66.5 6
Rathbone Ethical Corporate Bond 40.9 6
AXA Ethical Distribution 33.7 10
Kames Ethical Corporate Bond 22.8 5
Sarasin Sustainable Equity Real Estate 22.1 11
Castlefield BEST Sustainable Income Inst Inc 8.4 13
ASI Global Equity Impact Data unavailable 6.5
IA Global (for comparison) 104.5 -

* January 2021, data from

Following the publication of our guide to Ethical Funds in EC186, we have expanded this table to include all carbon divested funds as identified by 3D Investing.

Renewable energy

The ‘positive’ action of investing in renewable energy is, arguably, as important as the ‘negative’ action of divestment. While all the funds we are looking at have many other kinds of positive investments, the following four funds focus all their positive investments on environmental technologies and renewable energy:

See our ethical investment directory for more advice on investing in renewable energy.

Tax avoidance rankings

Only four companies avoided being marked down for likely use of tax avoidance strategies: WHEB, Impax, Alliance Trust and Elcot. Two companies received our middle ranking on this: Royal London and Bank of Montreal. All the others received the worst.

All the companies apart from WHEB, Impax and J Safra Sarasin were also marked down in the Anti-Social Finance category for paying obscene sums of money to their senior staff. However, while WHEB and Impax do pay less, Sarasin got off on this score just because we could not obtain the information. Being a Swiss bank, it is not obliged to disclose its directors’ pay.

Company behind the brand

Impax is a specialist environmental investment company. Impax Environmental Markets Investment Trust was the first UK listed equity fund to demonstrate a net positive carbon impact.[5]

Impax lost some marks as its Food and Agriculture Fund has investments in Unilever and Bunge, which have collected criticisms for many things including their use of animal products and the poor conditions in their supply chains.

Impax is also 25% owned by BNP Paribas, the third largest bank in the world. BNP Paribas invests in nuclear weapons, as well as many other unpalatable sectors. In 2015 it was fined $8.9 billion in the US after it was convicted of violating US sanctions.

Want to know more?

If you want to find out detailed information about a company and more about its ethical rating, then click on a brand name in the Score table.

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