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Low Carbon Designation

What is a low carbon designation?

A Low Carbon Designation helps investors identify low-carbon funds within the global universe. It's based on two metrics—the Morningstar Portfolio Carbon Risk Score and the Morningstar Portfolio Fossil Fuel Involvement.

To receive the designation, a fund must have a 12-month average Portfolio Carbon Risk Score below 10 and a 12-month average Fossil Fuel Involvement of less than 7% of assets. If a designation does not appear on the report, it means the company has not received a Low Carbon Designation.