Carbon Collective

Carbon Collective is an online investment advisory firm dedicated to helping investors divest from fossil fuels and invest in climate solutions. Founded in 2020, the company offers low-fee, diversified investment portfolios that exclude fossil fuel companies while allocating funds to companies working on solutions for climate change mitigation and adaptation.

Carbon Collective constructs its portfolios by utilizing low-carbon sector index ETFs covering technology, healthcare, communications, real estate, consumer staples, consumer discretionary, and financials. This strategy provides exposure to around 80% of the stock market while minimizing investments in high-emission industries like utilities, energy, materials, and industrials. To replace these high-carbon sectors, Carbon Collective has curated the "Drawdown Index," an index of publicly traded companies actively developing climate solutions across sectors such as clean energy, electrified transportation, efficient buildings, circular economy, sustainable foods, and industrial electrification.

The company's bond portfolios similarly avoid corporate bonds from fossil fuel companies, instead allocating to green bonds issued by entities financing renewable energy and carbon pollution prevention projects, as well as US Treasury bonds. In September 2022, Carbon Collective launched the Carbon Collective Climate Solutions US Equity ETF (CCSO), an actively managed ETF investing solely in companies deriving at least 50% of their revenue from climate solutions.

In addition to its retail investment offerings, Carbon Collective provides climate-focused 401(k) plans for employers, primarily targeting small businesses with fewer than 300 employees. The company aims to make sustainable investing accessible and drive capital toward companies working to mitigate climate change.