Question 1

Does sustainable investing cost you returns?

Accepted Answer

The evidence does not support the assumption that sustainable investing requires sacrificing returns. Stance Capital's research shows that sustainability criteria, when applied through a quantitative factor framework rather than simple exclusion screens, can be implemented without a systematic return penalty.

Question 2

What is carbon-neutral investing?

Accepted Answer

Carbon-neutral investing means that the portfolio's residual carbon emissions are calculated and offset annually by a third-party certifier. For Stance Sustainable Beta, Ethos calculates the portfolio's emissions each year and Stance purchases verified carbon offsets from Holganix regenerative agriculture projects to cover the full amount at no cost to the investor.

Question 3

How does Stance integrate sustainability into its investment process?

Accepted Answer

Stance uses Corporate Knights' 125-factor framework to evaluate companies on sustainable revenue, capital allocation, and governance practices. This is an analytical process built on independently verified company-level data, not a commercial ESG rating.

Question 4

What is the difference between ESG ratings and the approach Stance uses?

Accepted Answer

Commercial ESG ratings aggregate many different factors into a single score, which can obscure what is actually being measured. Stance builds its strategies using independently verified company-level data across specific dimensions rather than purchasing a third-party rating.

Investment Philosophy