Overview

Stance Sustainable Beta is an index-tracking, 100-position equal-weight, and fossil-free investment strategy, designed to offer concentration risk protection unlike traditional market cap-weighted approaches.

Methodology

Stance Sustainable Beta provides environmentally and socially conscious investors with diversified equity exposure to U.S. companies that adhere to the highest standards of environmental, social, and governance (ESG) principles.

Fund Objective: Seeks to track the performance, before fees and expenses, of the Change Finance Diversified Impact U.S. Large Cap Fossil Fuel Free Index.

The Index, developed in 2017 by Change Finance, measures the performance of an equal-weighted portfolio of approximately 100 large- and mid-cap U.S.-listed companies. It excludes firms involved in fossil fuels, fossil-fired utilities, and those failing to meet diverse ESG standards.

Construction begins with the Solactive US Large & Mid Cap Index, covering the largest 85% of free-float market capitalization in the U.S. Eligible companies are screened using ESG indicators from Corporate Knights Research, assessing factors like:

  • Exclusion of prohibited industries (e.g., oil, gas, coal, tobacco)
  • Avoidance of controversial goods (e.g., fossil fuels, GMOs, military weapons)
  • History of ethical business practices (e.g., human rights, environmental protection)
  • Environmental and human impact standards (e.g., emissions, diversity hiring)

The Index is reconstituted quarterly, maintaining 100 equally-weighted companies, with sector weights mirroring the Solactive Universe.

Carbon Neutrality

Stance Sustainable Beta offsets its portfolio’s carbon footprint by purchasing nature-based, certified carbon offsets equivalent to the emissions produced by its constituent companies (metric tons of carbon per million dollars invested).

Bayer Carbon Program: Supports farmers in the U.S. Midwest who implement regenerative agriculture practices—such as no-till and cover crops—that sequester carbon in the soil while growing corn, soybeans, and wheat.

These efforts improve soil health, reduce erosion, and reward farmers financially for sustainable practices.

Project Highlights

  • Revitalizes soil health, reduces erosion, and increases water availability
  • Third-party verification with partners like Soil Metrics and NSF
  • Aligned with Nori’s peer-reviewed Croplands Methodology