We screen publicly traded securities using a combination of financial criteria and environmental, social and governance (ESG) factors, based on independent research and ratings, to make investments in line with your priorities and your risk-return profile.
Integrating ESG into the investment process
ESG is more than a filter applied at the end of the investment process. Positive screening enables you to actively integrate ESG factors into investment decision-making.
Investments can be screened based on the strength of different factors relative to their industry peers. This enables us to work with you to identify opportunities that can have a positive impact on ESG issues while supporting your overall investment strategy.
ESG investing: our key approaches
The following four types of investing represent the main ways in which we integrate ESG factors into investment decisions. We work continuously to develop and enhance our ESG capabilities, so please get in touch for the latest information on how we can help you to achieve your individual goals.
- Exclusionary screening: Avoiding investing in companies or sectors that do not align with your values or that do not meet other norms or standards.
- Positive Screening: Actively seeking out companies deemed well-performing on certain ESG measures.
- Thematic: Focusing on investments according to your interest in specific ESG themes such as clean energy, water, education or healthcare.
- Impact investing: Investing in companies or funds with the intention of generating positive, measurable social and/or environmental impact alongside a financial return.
Investors can access single-line equities, equity funds or managed accounts that have been constructed to focus on ESG factors and screen companies based on certain ethical norms or other criteria.
Fixed income is an asset class that is increasingly used in ESG investing. Investors have growing access to products such as green bonds, which finance environmental projects, and social impact bonds, which use “pay for performance” models to achieve social outcomes on issues such as education and recidivism. Investors can access instruments from issuers, fixed-income funds or managed accounts that have been constructed to focus on ESG factors.
A growing number of mutual funds, including Exchange Traded Funds (ETFs) – the most liquid and tradable type – are specialising in ESG investments. These funds enable investors to apply ESG factors using exclusion strategies, such as by avoiding defense or fossil fuel industries, or investing in more tailored products, such as funds investing in particular sectors (e.g. clean energy) or ETFs with specific social goals.
Alternatives*, including private market debt and equity investments and real estate, have seen real momentum in ESG investing. Investors can access early-stage socially and environmentally driven enterprises as well as direct investments or funds that invest in companies or projects with a thematic or impact-driven focus. * Alternative investments are not suitable for all investors, may involve a high degree of risk and may only be appropriate for sophisticated investors who are capable of understanding and assuming the risks involved.
Your preferred ESG philosophy and approach can be applied using a diverse range of solutions, from ESG-minded portfolios and funds to bespoke investment opportunities.