Fund Filters
Sustainability
Environmental policy
Sustainability policy
Limits exposure to carbon intensive industries
Resource efficiency policy or theme
Sustainable transport policy or theme
Sustainability theme or focus
Environmental damage and pollution policy
Favours cleaner, greener companies
Waste management policy or theme
Sustainability focus
Report against sustainability objectives
Encourage more sustainable practices through stewardship
Nature & Biodiversity
Plastics policy / reviewing plastics
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
Clean / renewable energy theme or focus
Arctic drilling exclusion
Fossil fuel reserves exclusion
Energy efficiency theme
Require net zero action plan from all/most companies
Paris aligned fund strategy
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 >50% of fund in environmental/social solutions companies
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
Health & wellbeing policies or theme
Diversity, equality & inclusion Policy (fund level)
Labour standards policy
Fast fashion exclusion
Favours companies with strong social policies
Mining exclusion
Ethical Values Led Exclusions
Tobacco and related product manufacturers excluded
Armaments manufacturers avoided
Alcohol production excluded
Gambling avoidance policy
Pornography avoidance policy
Civilian firearms production exclusion
Banking & Financials
Predatory lending exclusion
Exclude banks with significant fossil fuel investments
Governance & Management
Governance policy
Anti-bribery and corruption policy
Avoids companies with poor governance
Encourage board diversity e.g. gender
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 mostly in large cap companies
How The Fund Works
Combines ESG strategy with other SRI criteria
Significant harm exclusion
SRI / ESG / Ethical policies explained on website
Impact Methodologies
Aims to generate positive impacts (or 'outcomes')
Measures positive impacts
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
Over 50% in assets providing environmental or social ‘solutions’
Intended Clients & Product Options
Intended for investors interested in sustainability
Available via an ISA (OEIC only)
Portfolio SRI / ESG options available (DFMs)
Bespoke SRI / ESG portfolios available (DFMs)
Fund management company information
About The Business
ESG / SRI engagement (AFM company wide)
Responsible ownership / stewardship policy or strategy (AFM company wide)
Responsible ownership policy for non SRI funds (AFM company wide)
Responsible ownership / ESG a key differentiator (AFM company wide)
Diversity, equality & inclusion engagement policy (AFM company wide)
Vote all* shares at AGMs / EGMs (AFM company wide)
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)
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
Investment Association (IA) member
Accreditations
UK Stewardship Code signatory (AFM company wide)
Engagement Approach
Encourage responsible corporate taxation (AFM company wide)
Engaging on climate change issues
Engaging to reduce plastics pollution / waste
Engaging on biodiversity / nature issues
Engaging on human rights issues
Engaging on labour / employment issues
Engaging on diversity, equality and / or inclusion issues
Engaging on governance issues
Engaging on mental health issues
Company Wide Exclusions
Do not invest in companies with fossil fuel reserves
Climate & Net Zero Transition
Encourage carbon / greenhouse gas reduction (AFM company wide)
Net Zero commitment (AFM company wide)
Working towards a ‘Net Zero’ commitment (AFM company wide)
Net Zero - have set a Net Zero target date (AFM company wide)
Transparency
Publish full voting record (AFM company wide)
Publish responsible ownership / stewardship report (AFM company wide)
Full SRI policy information on company website
Sustainable, Responsible &/or ESG Policy:
All fund assets within our Sustainable fund range are subject to analysis under our B.E.S.T framework, which provides a consistent outline for assessing all investment opportunities at Castlefield and takes the following considerations into account: Business and Financial; Environmental and Ecological; Social; Transparency and Governance. As long-term investors, the incorporation of ESG and sustainability analysis is integral to our research on all asset classes.
Our Castlefield Sustainable Screening Policy is also applied to the fund research process and seeks to exclude specific industries and activities from our investment universe. By means of our negative screens, we aim to exclude those investments which contradict our belief that responsible and sustainable business practices (such as armaments and tobacco) will produce better returns for investors over the long term. This belief also leads to a positive bias towards investments which contribute towards key sustainability themes and those which conduct their operations with due care and attention to the environment and society. These positive themes are also detailed within the Screening Policy.
The industries and activities screened out of our investment universe are done so on a 10% revenue or operating profit threshold (whichever is higher). Materiality assessments also take place to differentiate between primary vs secondary involvement, etc. Screened out industries include: armaments, nuclear, fossil fuels, gambling, alcohol, and tobacco, amongst others. There are also issues which are not able to be addressed by a quantitative screen; these include social issues such as human rights, labour standards and responsible marketing, as well as environmental topics such as resource efficiency and pollution.
We also believe active ownership is a key part of any sustainable investment mandate and have made out Corporate Governance & Voting Guidelines available on our website for investors.
Process
Following the identification of an investment opportunity, either through quantitative screening or alternative idea generation opportunities, investment ideas are subject to our internal screening process. The industries and activities screened out of our investment universe are done so on a 10% revenue or operating profit threshold (whichever is higher). Materiality assessments also take place to differentiate between primary vs secondary involvement, etc. Screened out industries include: armaments, nuclear, fossil fuels, gambling, alcohol, and tobacco, amongst others. There are also issues which are not able to be addressed by a quantitative screen; these include social issues such as human rights, labour standards and responsible marketing, as well as environmental topics such as resource efficiency and pollution.
In order to then identify the best investment opportunities which pass our screening process. we’ve developed a proprietary investment selection system – the B.E.S.T framework - to assess the merits of competing investment choices. It’s used across and within asset classes and provides a consistent framework for assessing all investment opportunities at Castlefield. It’s not a filter or screen, but a responsible investment process which incorporates four main criteria to assess both financial and non-financial attributes that we think can affect long-term investor returns.
B – Business and Financial
E – Environmental and Ecological
S – Social
T – Transparency & Governance
In most cases we are able to meet with management or an investor relations representative before investing, which provides and opportunity to conduct further due diligence on the investment case and its E.S.T credentials. Finally, all investment ideas are subject to a peer review process in which the investment team.
Dialshifter
This fund is helping to ‘shift the dial from brown to green’ by…
Alongside excluding companies which do not meet our screening criteria, we also seek to invest in companies which positively benefit people and planet over the long term. Our ten positive themes include: Cyber & Digital Security, Health & Wellbeing, Education, Resource Efficiency, Employee Ownership & Responsible Business, Safety & Regulatory Compliance, Environmental Management, Sustainable Infrastructure, Financial Resilience and Sustainable Supply Chains. All holdings are assessed to determine their contribution to these themes, and we publish details on each funds overall alignment.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by…
Castlefield have committed to making our own emissions and supply chain net zero by 2030. We have also committed to achieve net zero across our investment portfolio by 2040. Our investment approach seeks companies with excellent environmental credentials, which can help bring society closer to net zero. We also track the extent to which the companies that we invest in have set net zero and other emission reduction targets, monitoring them on an ongoing basis and actively encouraging target setting to help reduce portfolio emissions.