Fund Filters
Sustainability
Environmental policy
Sustainability policy
Limits exposure to carbon intensive industries
Sustainable transport policy or theme
Sustainability theme or focus
Environmental damage and pollution policy
Waste management policy or theme
Favours cleaner, greener companies
Sustainability focus
Encourage more sustainable practices through stewardship
Circular economy theme
Nature & Biodiversity
Deforestation / palm oil policy
Plastics policy / reviewing plastics
Biodiversity / nature policy
Nature / biodiversity based solutions theme
Nature / biodiversity focus
Responsible palm oil policy
Sustainable fisheries policy
Nature / biodiversity protection policy
Water stewardship policy
Climate Change & Energy
Nuclear exclusion policy
Coal, oil & / or gas majors excluded
Climate change / greenhouse gas emissions policy
Invests in clean energy / renewables
Fracking and tar sands excluded
Arctic drilling exclusion
Fossil fuel reserves exclusion
Energy efficiency theme
Require net zero action plan from all/most companies
Encourage transition to low carbon through stewardship activity
Fossil fuel exploration exclusion - direct involvement
Targeted Positive Investments
Invests >25% of fund in environmental/social solutions companies
Invests > 5% in green bonds
Invests > 5% in sustainable bonds
Human Rights
Human rights policy
Child labour exclusion
Responsible supply chain policy or theme
Oppressive regimes (not free or democratic) exclusion policy
Modern slavery exclusion policy
Social / Employment
Social policy
Diversity, equality & inclusion Policy (fund level)
Labour standards policy
Favours companies with strong social policies
Meeting Peoples' Basic Needs
Water / sanitation policy or theme
Invests > 5% in social bonds
Invests > 5% in social housing
Healthcare / medical theme
Ethical Values Led Exclusions
Ethical policies
Animal welfare policy
Tobacco and related product manufacturers excluded
Armaments manufacturers avoided
Alcohol production excluded
Gambling avoidance policy
Pornography avoidance policy
Animal testing - excluded except if for medical purposes
Civilian firearms production exclusion
Banking & Financials
Predatory lending exclusion
Governance & Management
Governance policy
Anti-bribery and corruption policy
Avoids companies with poor governance
Digital / cyber security policy
Encourage board diversity e.g. gender
Encourage TCFD alignment for banks & insurance companies
UN sanctions exclusion
Encourage higher ESG standards through stewardship activity
Fund Governance
ESG integration strategy
ESG factors included in Assessment of Value (AoV) report
Employ external (fund) oversight or advisory committee
Asset Size & Metrics
Over 50% large cap companies
Invests in small, mid and large cap companies
Invests mostly in large cap companies
Invest in supranationals
How The Fund Works
Single resource theme or focus
Strictly screened ethical fund
Positive selection bias
Negative selection bias
Norms focus
Combines norms based exclusions with other SRI criteria
Combines ESG strategy with other SRI criteria
ESG weighted / tilt
Focus on ESG risk mitigation
Selection criteria / strategy may alter in adverse markets
Significant harm exclusion
SRI / ESG / Ethical policies explained on website
All assets (except cash) meet published sustain'y criteria
Participated in sustainability solutions IPOs or new issuances
Impact Methodologies
Aims to generate positive impacts (or 'outcomes')
Positive environmental impact theme
Positive social impact theme
Invests in environmental solutions companies
Invests in social solutions companies
Invests in sustainability / ESG disruptors
Aim to deliver positive impacts through engagement
Labels & Accreditations
RSMR rated (OEIC funds only)
Eurosif Transparency
Intended Clients & Product Options
Faith friendly
Intended for investors interested in sustainability
Available via an ISA (OEIC only)
Fund management company information
About The Business
ESG / SRI engagement (AFM company wide)
Responsible ownership / stewardship policy or strategy (AFM company wide)
Responsible ownership / ESG a key differentiator (AFM company wide)
Vote all* shares at AGMs / EGMs (AFM company wide)
Diversity, equality & inclusion engagement policy (AFM company wide)
Sustainable property strategy (AFM company wide)
Specialist positive impact fund management company
Boutique / specialist fund management company
Integrates ESG factors into all / most fund research
Just Transition policy on website (AFM company wide)
Invests in newly listed companies (AFM company wide)
Invests in new sustainability linked bond issuances (AFM company wide)
Offer structured intermediary training on sustainable investment
Offer unstructured intermediary sustainable investment training
Resources
In-house responsible ownership / voting expertise
Employ specialist ESG / SRI / sustainability researchers
Use specialist ESG / SRI / sustainability research companies
ESG specialists on all investment desks (AFM company wide)
Collaborations & Affiliations
PRI signatory
UKSIF member
Climate Action 100+ or IIGCC member
Fund EcoMarket partner
Accreditations
UK Stewardship Code signatory (AFM company wide)
PRI A+ rated (AFM company wide)
Engagement Approach
Regularly lead collaborative ESG initiatives (AFM company wide)
Encourage responsible corporate taxation (AFM company wide)
Engaging on climate change issues
Engaging to reduce plastics pollution / waste
Engaging on biodiversity / nature issues
Engaging to encourage a Just Transition
Engaging on human rights issues
Engaging on labour / employment issues
Engaging on diversity, equality and / or inclusion issues
Engaging on governance issues
Engaging on responsible supply chain issues
Company Wide Exclusions
Review(ing)carbon / fossil fuel exposure for all funds (AFM company wide)
Coal exclusion policy (group wide coal mining exclusion policy)
Coal divestment policy (AFM company wide)
Controversial weapons avoidance policy (AFM company wide)
Tobacco avoidance policy (AFM company wide)
Fossil fuel exclusion policy (AFM company wide)
Do not invest in companies with fossil fuel reserves
Climate & Net Zero Transition
Encourage carbon / greenhouse gas reduction (AFM company wide)
In-house carbon / GHG reduction policy (AFM company wide)
Publish 'CEO owned' Climate Risk policy (AFM company wide)
Committed to SBTi / Science Based Targets Initiative
Transparency
Publish full voting record (AFM company wide)
Publish responsible ownership / stewardship report (AFM company wide)
Full SRI policy information on company website
Full SRI policy information available on request
Paris Alignment plan publicly available (AFM company wide)
Sustainable, Responsible &/or ESG Policy:
The Fund seeks to avoid investment in certain areas such as companies which have a material involvement (10% or more) in alcohol and tobacco production, conventional weapon production, gambling, publication of violent or explicit materials, intensive farming, fossil fuel exploration and production and high interest (sub-prime) lending.
The Fund will seek to avoid companies with material operations in oppressive regimes. The Fund has a proprietary means of assessing oppressive regime risk, and operates this on a case by case basis.
It will also seek to avoid companies that have exposure to the manufacture of unconventional weapons where these are defined as nuclear, biological and chemical weapons, land mines and cluster bombs. Finally, the Fund will seek to avoid companies using animals to test cosmetic, beauty or household products. It will invest in pharmaceuticals companies that may conduct animal testing but will encourage the adoption of the 3R principles: refine, reduce, and replace.
Our responsible and sustainable screening captures the quality and strength of a company’s approach to sustainable business. This includes assessing a diverse range of indicators including environment and climate change, conflict minerals, custody of supply in raw materials sourcing (e.g. timber) and pollution etc. By way of example when specifically assessing corporate sustainability as it relates to climate change we would analyse key indicators such as emissions disclosure, how targets are set, whether they are science based and ambitious enough to demonstrate commitment to a low carbon economy and whether the company is providing solutions that support climate resilience, mitigation and / or adaptation.
The Fund favours companies that follow good Business Ethics, Corporate Governance, Employment & Labour practices, Environment and Climate Change Management, Human Rights, and Community Relations and is particularly positive on companies that contribute to Education, Health & Wellbeing, Social Infrastructure and Sustainable Solutions.
Process
Idea Generation – Investment ideas originate from a variety of sources including sell-side analyst research from Investment banks, investor roadshows, external credit ratings research providers such as Moody’s, alongside internally-generated research and thematic screens in developing investment theses.
Credit Analysis – Applying a long-term horizon, we then set out to conduct in-depth analysis to gauge the ability and willingness of an issuer to repay outstanding debt obligations. We seek to identify high quality companies with sound financials, solid balance sheets and good growth prospects. Bond indentures, sustainable debt frameworks and peer comparisons are conducted to ensure that valuation metrics adequately reflect inherent credit and ESG risks. Credit research is typically undertaken in tandem with responsible screening, with the results both being presented and discussed by the relevant individuals and or the Investment team at large. External data from ISS Ethix is used to complement our in-house screening capabilities, with publically available company information also aiding the analytical process.
Portfolio construction – Following on from the investment decision, suggested transactions are assessed within the context of the overall portfolio in terms of fit, liquidity, risk and conviction.
We seek to vary average duration and asset allocation positioning based on the prevailing economic outlook and market conditions in line with the investment strategy. For instance, were yields to rise to a level at which we feel would compensate investors for the underlying duration risks, the Fund’s duration would be lengthened and vice versa.
Review – Portfolio holdings are typically subject to ongoing reviews including performance, risk analysis, need for engagement, market outlook and with respect to asset and sector allocations. Active engagement is particularly integral to the review process and enables for the optimisation of risk, return and impact. We routinely seek to engage with issuers directly and via collaborative initiatives to catalyse change and ensure desired direction of travel on all ESG factors in addition to the financial performance of the company.
We accept that circumstances change and therefore revisit positions to ensure that they continue to deliver on the Fund’s objectives.
Resources, Affiliations & Corporate Strategies
EdenTree has a specialist, dedicated RI Team which comprises five people.
- Neville White, Head of RI Policy & Research – Neville is the RI Team Governance lead and is responsible for policy and strategy.
- Rita Wyshelesky, Senior Responsible Investment Analyst – Rita leads on Thematic, Sustainability and Impact supporting the team with screening, engagement and research.
- Carlota Esguevillas, Senior Responsible Investment Analyst – Carlota leads EdenTree’s work on social topics such as human rights, diversity and workforce issues supporting the team with screening, engagement and research.
- Amelia Gaston, Responsible Investment Analyst – Amelia supports the team with screening, engagement and research and is the environment and climate change lead.
- Cordelia Dower-Tylee, Responsible Investment Analyst – Cordelia supports the team in all aspects of responsible investing.
Responsible and sustainable factors are fully integrated into the investment management process, with our Fund Managers and RI Team working side by side to generate ideas, analyse opportunities, create meaningful and diversified portfolios, and undertake ongoing evaluation and engagement.
Our basic ESG risk analysis is provided by ISS-ESG which provides core ESG disclosure data as well as rating each company within an industrial sector peer group across E, S & G pillars; this rating is used solely as a guide as suitability is driven by our in-house screening process.
Our RI team conducts additional research and analysis from publicly available materials including:
- Company literature (annual reports, websites and sustainability reports)
- Industry or trade body publications and websites
- NGO reports and websites e.g. Banktrack
- Government and academic research
- Investor benchmark initiatives
EdenTree has been a proud signatory of the PRI since 2012. For more information on how EdenTree works with the PRI please see our PRI transparency report here and PRI Assessment Report here
Whilst asset managers are able, and often choose, to omit or hide specific sections of the PRI Transparency Report, EdenTree publish the full report for complete transparency. For the PRI Assessment Report, we also publish the full report here. In 2021, EdenTree achieved a 4 star rating for our Investment & Stewardship Policy.
Other signatory partnerships include:
- Principles of Responsible Investing;
- Institutional Investors Group on Climate Change (IIGCC);
- CDP (formerly Carbon Disclosure Project);
- Access to Nutrition Index (ATNI);
- Access to Medicines Index (ATMI);
- Business Benchmark on Farm Animal Welfare (BBFAW);
- Corporate Human Rights Benchmark (CHRB);
- Farm Animal Investment Risk & Return;
- Workforce Disclosure Initiative (WDI);
- Montréal Pledge;
- Paris Pledge;
- LSE Financing a Just Transition Alliance;
- UK Sustainable Investment & Finance Association;
- 30% Club on Diversity;
- Global Impact Investing Network;
- World Benchmarking Alliance;
We believe that these key signatory partnerships signals our commitment to having an active and positive role in our investment community, achieving more than which we can achieve ourselves. Collaborations are critical to achieving this, whilst learning from expert sources allows us to provide more for our clients and supporting initiatives truly helps to gain momentum. We have been a signatory to the UK Stewardship Code since inception (Tier I).
Responsible Investment Panel Review
The Responsible Investment Advisory Panel (“Panel”) meet three times each year to review the Responsible & Sustainable Fund portfolios, the recent investment decisions and to discuss the latest responsible and sustainable research and trends. The purpose of the Panel is to:
- Help to ensure that the EdenTree Responsible & Sustainable Range of Funds meet the stated aims and objectives.
- Provide advice in the formulation of policy in the light of changing social and environmental issues.
The Panel will provide advice to the RI team in a number of ways:
- Advising on emerging issues or topics relevant to RI criteria.
- Provide advice and guidance on individual companies or sectors, and engagement work.
The Panel is made up of a number of industry experts, including:
- The Right Reverend Dr Nigel Peyton – Panel Chair
- Mike Barry – Former Director of Sustainable Business
- Julie McDowell – Independent Consultant
- Julian Parrott – Client Member, Ethical Futures
- Bill Seddon – Former CEO CFB Methodist Church
- Sue Round – Chair of EdenTree Investment Management ACD Board and former CEO
- Annette Ferguson – Independent Consultant (former Head of Sustainable Business at Vodafone)
- Paul Simpson OBE – Strategic Advisor (former CEO of CDP)
Dialshifter
This fund is helping to ‘shift the dial from brown to green’ by…
Our responsibility criteria has six different considerations which assess ESG risks and reflect our commitment to responsible investment. One of the six criteria is environment and climate, including support for biodiversity, climate change impact and carbon footprint, water conservation, air pollution, manage waste, recycling, and support renewable energy.
We have four more thematic positive investment themes - one of which is sustainable solutions - this includes products and solutions, the circular economy, green finance, green buildings, renewable energy, water and waste.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…
We have close to 100% of assets (98%) managed in an ethical and sustainable way. We carefully scrutinize whether emissions reductions targets are science based, and all funds are currently in-line with the Paris Agreement target of no more than 1.5 degrees of warming.
Our parent the Benefact Group aims to deliver a zero direct impact (Scope I & II) by 2023, and net zero (Scope III) by 2040. EdenTree will support the Group in its ambitions, whilst developing its own thinking to support investing clients. As a Group subsidiary we form part of the Group’s overall Net Zero ambition.