Credit Suisse Commodity Return Strat FD has an average Morningstar Sustainability Rating of 3 globes, indicating that the ESG risk of holdings in its portfolio is similar to that of its peers in the Commodities Broad Basket category. Investors concerned about ESG risk may be better off with funds in the category that receive 4 or 5 globes, as they tend to invest in securities less exposed to ESG risk. ESG risk provides investors with a signal that reflects to what degree their investments are exposed to risks related to material ESG issues, such as climate change and inequalities, that are not sufficiently managed. ESG risk differs from impact, which is about seeking positive environmental and social outcomes.
Credit Suisse Commodity Return Strat FD has a Carbon Risk Score of 0.00, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 28.48% for its average peer. No companies held by Credit Suisse Commodity Return Strat FD are recognized as being involved in controversies at a high or severe level. From bribery and corruption to workplace discrimination and environmental incidents, controversies can have significant financial repercussions, ranging from legal penalties to consumer boycotts. In addition, controversies can damage the reputation of both companies themselves and their shareholders.
One potential issue for a sustainability-focused investor is that Credit Suisse Commodity Return Strat FD doesn’t have an ESG-focused mandate. A fund with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes.