The glossary provides more information on some of the key terms we use on MyFairMoney. It also describes criteria, methods and data sources in more detail. This will help you dive deeper into the topic of sustainable investment!
A single indicator attempts to provide a fund with a single rating, thereby enabling a quick and easy understanding of the fund. Single indicators can be financial or non-financial. Examples in the area of sustainability are various ESG ratings, but also the Paris compatibility score shown in the fund database. However, such individual indicators represent a highly simplified view of financial instruments. The aggregation across sectors necessary for a single indicator leads to the loss of essential information within sectors, and can obscure individual lagging companies. Therefore, in order to fully understand a fund's contribution to global warming, this database includes other indicators, such as CO2 efficiency in individual sectors.