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Calvert Emerging Markets Equity A CVMAX Sustainability

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Sustainability Analysis

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Sustainability Summary


Calvert Emerging Markets Equity Fund has a number of positive attributes that may appeal to sustainability-focused investors.

This strategy holds securities with low exposure to ESG risk relative to those of its peers in the Morningstar Global Emerging Markets Equity category, earning it the highest Morningstar Sustainability Rating of 5 globes. 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.

Based on its latest prospectus, sustainability or ESG factors are a focus in the investment process of Calvert Emerging Markets Equity Fund. Funds with ESG-focused mandates are more likely to deliver positive sustainability outcomes. One key area of strength for Calvert Emerging Markets Equity Fund is its low Morningstar Portfolio Carbon Risk Score of 8.98 and very low fossil fuel exposure over the past 12 months, which earns it the Morningstar Low Carbon Designation. The fund is therefore well positioned to transition to a low-carbon economy. Currently, the fund's involvement in fossil fuels is negligible, and compares favorably with 5.30% for its average peer.

Its 17.90% involvement in carbon solutions is higher than the 8.90% average involvement of its peers in the Diversified Emerging Mkts category. Carbon solutions include products and services related to renewable energy, energy efficiency, green buildings, green transportation, and so on. The fund aims to avoid or minimize holdings in companies breaching international norms, including the UN Global Compact or the Universal Declaration of Human Rights.

The fund exhibits high exposure (12.69%) to companies with severe controversies. From bribery and corruption to workplace discrimination and environmental incidents, controversies are incidents that may negatively affect stakeholders, the environment, or the company’s operations.

By prospectus, the fund aims to avoid, or limit its exposure to, companies associated with controversial weapons, tobacco, and small arms. The fund mostly fulfills this goal; however, it does exhibit 0.32% exposure to companies involved in small arms. This compares with 0.15% for its average peer in the Global Emerging Markets Equity category.

ESG Commitment Level Asset Manager

 | Basic