7IM Responsible Choice Model Portfolios
SRI Style:
Sustainability Tilt
SDR Labelling:
Not eligible to use label (out of scope)
Product:
DFM/Portfolio
Fund Region:
Global
Fund Asset Type:
Multi Asset
Launch Date:
24/12/2020
Last Amended:
Sep 2025
Dialshifter (
):
Fund/Portfolio Size:
£56.00m
(as at: 31/08/2025)
Total Screened Themed SRI Assets:
£114.00m
Total Responsible Ownership Assets:
£9000.00m
Total Assets Under Management:
£23000.00m
Contact Us:
Objectives:
Fund objective of income and capital growth depends on the risk profile of the model portfolio. More information can be found in the factsheets.
Sustainable, Responsible
&/or ESG Overview:
Launched in December 2020, they aim to get exposure to environmental, social and governance (ESG) leaders, environmental and social themes and impact stocks. To that end, we adopt a rigorous, multi-step process when it comes to selecting third-party funds and products to ensure that only appropriate investments make it into the Responsible Choice Portfolios.
The Responsible Choice Models cover the full responsible investment spectrum. They focus on investments that score well on ESG factors and minimise exposure to controversial activities such as Armaments, Tobacco and Thermal coal. We also look beyond these for investments that will have positive long-term impacts on society and the environment. All of this is done without compromising on our investment strategy and risk management.
7IM has a suite of six Responsible Choice Model Portfolios. The portfolios range from cautious to adventurous plus.
Primary fund last amended:
Sep 2025
Information directly from fund manager.
Fund Filters
Sustainability - General
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity
Environmental - General
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail.
Climate Change & Energy
Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Avoid investing in companies / assets with coal, oil and gas reserves. See individual entry information for further details.
Invest (or may invest) in clean / renewable energy companies and other assets. The proportion directly or indirectly invested in renewable energy may vary over time.
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary.
Social / Employment
Aims to invest in assets with high social values - this may include strong human rights, labour standards and equal opportunities or safety related practices.
Has policies or themes that set out their approach to health and wellbeing issues, typically aims to invest in companies with high standards - or encourage high standards.
Ethical Values Led Exclusions
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Avoids companies that derive significant income from pornography and related areas. Strategies vary.
Human Rights
Has a policy which excludes assets with involvement in Modern Slavery
Meeting Peoples' Basic Needs
Has a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary.
Healthcare and or medical theme or area of investment - may have a single or many themes
Gilts & Sovereigns
Invest in loans issued the government, commonly known as gilts or government bonds. These may or may not be ringfenced for specific projects (see additional options).
Avoids investing in 'some' gilts or government bonds. Strategies vary, but this may relate to avoiding specific countries or particular reasons for bond issuance. 'Green gilts' for example would be likely to be acceptable.
Invest in financial instruments issued by governments, but will only hold those that meet certain environmental and or social criteria. This may, for example mean certain assets are excluded in line with eg Freedom House research. Strategies vary.
Banking & Financials
Can include banks as part of their holdings / portfolio.
Invests in financial instruments (cash, derivatives and / or foreign exchange) issued by banks. Strategies vary.
Governance & Management
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity
Product / Service Governance
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature.
Asset Size
Invests in a combination of small, medium and larger (potentially multinational) companies / assets.
Invests in international entities or bodies with agreed remits that are broadly similar to those that may otherwise be undertaken by individual governments eg the UN
How The Fund/Portfolio Works
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Has principle approach to apply positive or negative ethical, social and / or environmental screens. Strictly screened investments are likely to exclude more companies than other related options. Strategies vary.
Invest more heavily in assets which have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to the strategy you should expect assets in most sectors. Strategies vary.
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Does not use stock lending for performance or risk purposes.
Unscreened Assets & Cash
Holds between 70-79% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Holds between 80-89% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Intended Clients & Product Options
Designed to meet the needs of individual investors with an interest in sustainability issues.
Designed for clients who care about ethical and values-based issues, often alongside sustainability issues also.
Designed to meet the needs of individual investors with an interest in ‘Impact investment’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies regarded as beneficial to people and / or the planet. Strategies vary.
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option
Fund Management Company Information
About The Business
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Find fund / asset managers that consider responsible ownership and ESG to be a key differentiator for their business.
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide).
Collaborations & Affiliations
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Fund management entity is a member of the Investment Association https://www.theia.org/
Resources
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)
Accreditations
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'.
Engagement Approach
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
The fund / asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Fund / asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Fund / asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Fund / asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.
Company Wide Exclusions
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.
Climate & Net Zero Transition
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.
Transparency
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards.
Sustainable, Responsible &/or ESG Policy:
The Manager starts the investment process by identifying the best mix of asset classes to create a long-term strategic asset allocation (SAA) customised for each 7IM risk profile. The Manager will then look to make measured deviations from the SAA on a tactical basis, with the aim of enhancing the return and/or reducing the risk for a given profile. Once this Tactical Asset Allocation (TAA) is established, a portfolio is then constructed with funds selected by the Manager to populate the TAA.
Our portfolios cover the full responsible investment spectrum.
The portfolios focus on investments that score well on ESG factors and aim to avoid companies that produce products like weapons, tobacco and thermal coal. We also look for investments that will have a positive long-term impact on society and the environment. All of this is done remaining true to our investment strategy and careful management of risks.
At 7IM, we are committed to fighting climate change in how we run our business and in our investments. The Responsible Choice Models are designed to reduce portfolio carbon emissions by at least 40%, compared with our standard models.
Process:
More detail can be found here: https://www.7im.co.uk/media/2c1bkokz/7im-responsible-choice-screening.pdf
1. Negative screening
We apply specific exclusions on company shares, corporate bonds and other funds to keep exposure to controversial activities to a minimum. These controversial activities are outlined below:
- Adult entertainment
- Alcohol
- Gambling
- Small Arms
- Fur & Specialty Leather
- Controversial Weapons
- Thermal Coal
- Tobacco
In respect of company shares and corporate bonds, the maximum revenue limit for any company is 10%. In respect of investments in other funds, there may be differences in the revenue limits. Further details are provided in Responsible Choice Screening Report. In any event, we limit the total exposure to companies linked to the excluded activities to 1%. If the aggregate portfolio exposure to the exclusions outlined above breaches this 1% tolerance, we will resolve any issue as soon as is practicably possible.
2. Positive Selection
Active funds
When selecting collective investment schemes managed by third-parties, we try and identify managers that have the following characteristics:
- Systematically integrate ESG factors into investment decisions • Analyse ESG materiality before and after investment decisions
- Act as good stewards and implement responsible investment and engagement practices
- Address positive and negative outcomes caused by their investment
The purpose of the fund selection process from an ESG perspective is to identify an investment that has the people, process and expertise in place to invest sustainably. We explain this below and use Morningstar, Bloomberg and ESG Manager to validate this due diligence.
- We screen the asset class universe for funds which follow a sustainable benchmark or systematically integrate ESG factors into investment decisions
- We screen these investments based on size, date of launch and key performance metrics
- We meet with managers to discuss how they integrate ESG into their investment process, firm culture and how they engage with companies that they are invested in
- We then do a deep dive into their investment process, how they generate value and how they manage risks
When a new fund is proposed, we follow a rigorous review process whereby the investment manager and the sector specialist with responsibility for the asset class at 7IM meet the fund managers of the fund. At that point, we explore the fund investment process and philosophy, strength of the team managing the fund, years of experience, research resources, risk analysis and performance attribution. All this is captured in an extensive due diligence document which highlights potential issues to pay particular attention to. Post investment, the performance is monitored using style-adjusted benchmarks on a fortnightly basis at our Portfolio Management Committee. We meet with the managers at least once a year, or on an ad-hoc basis if there is an issue which needs to be explored. We also review a fund manager’s and the strategy’s progress in ESG terms.
Passive funds
Passive funds, which include exchange-traded funds and open-ended funds, are selected on the basis that they track recognised ethical or socially responsible indices. These passive funds typically use both negative and positive screening to filter the best companies in the broader index. In some cases, we need to use a passive fund to access a particular sustainable theme in the portfolio. In the cases where the fund doesn’t track an ethical or socially responsible index, we must judge whether the index meets certain ESG characteristics. To do this, we ensure it has at least an ‘A’ ESG rating on MSCI’s fund rating tool and has a very low potential for exposure to controversial weapons, tobacco or other controversial activities
- We screen the asset class universe for passive funds which follow a sustainable benchmark
- We screen these investments based on size, date of launch, cost and key performance metrics
- Preferably we select managers that score highly on our ESG Convictions Framework
If the product is following a sustainable benchmark, we meet with the manager to find out how the benchmark is constructed, focusing on the negative and positive screens that are in place. We also speak with the manager to see how the index rules have changed over time and how they may develop in the future.
We also review a passive fund manager’s and the strategy’s progress in ESG terms.
Resources, Affiliations & Corporate Strategies:
At the end of 2024, the corporate governance framework was as follows:
Stewardship and Responsible Investing
7IM underwent ownership and senior leadership changes over the course of 2023 and this was finalised in early 2024. Ontario Teachers’ Pension Plan Board (“Ontario Teachers’” or “OTPP”) has acquired a majority stake in 7IM, from Caledonia Investments plc (“Caledonia”). The strong cultural alignment between the two entities under our updated ownership structure has reinforced our dedication to responsible business practices and facilitate positive outcomes for clients. A key focus for us is to strengthen the functions of committees to ensure the full integration of ESG considerations across the business and investments. Revisions to sustainability governance within 7IM were approved and implemented in early 2024. The below highlights the structure of our Sustainability Committee as of December 2024. The Sustainability Committee was set up in 2020 and reports to the 7IM ExCo. The objective of the Committee remains the same. The Committee is held accountable for pulling together and embedding our commitments within our culture and related groups and activity and includes people from across the whole business.
- Investment Management team;
- People and Culture team;
- Charity Committee;
- Risk and Compliance team;
- Operations team;
- Finance team;
- Client Experience and Transformation team;
- Private Client team;
- Intermediary team;
- Partners Wealth Management; and
- Platform team.
The Sustainability Committee is chaired by Russell Lancaster (Managing Director, Platform & Intermediary Partnerships, ExCo member). The Sustainability Committee’s responsibilities include: i) to act as guardian of the 7IM Stewardship Code and the Sustainability Framework; ii) to review and recommend changes to 7IM’s sustainability strategy and policy, to ensure that standards of business behaviour are up to date and reflect best practice; iii) to introduce to 7IM best practice thinking and ongoing awareness of global developments in sustainability and Corporate Social Responsibility (CSR); and iv) to make sure the 7IM culture is respected and advanced across the firm. Through 2024, we refined 7IM’s Sustainability Framework & Strategy, explained further on p. 33. Investment stewardship and ESG integration at 7IM are managed by the ESG Investment Committee, also set up in 2020. It reports to the Sustainability Committee and to the Investment Committee, which is the senior decision-making body for all 7IM’s investments and is ultimately responsible for investment performance. The ESG Investment Committee is based in the Investment Management team and has five members. It includes representatives from every stage of the investment process at 7IM: Strategic Asset Allocation, Tactical Asset Allocation, Portfolio Management and Investment Risk. A member of the Investment Committee also sits on the ESG Investment Committee.
Stewardship governance
We reviewed and upgraded our stewardship governance framework in 2020 to support 7IM’s stewardship more effectively and explicitly. At the corporate level, as noted earlier, the Sustainability Committee is responsible for stewardship and related issues. The Sustainability Committee is chaired by a member of ExCo. At the investment level, the ESG Investment Committee ensures full integration of stewardship through our investment processes, overseen by the Investment Committee. As discussed in our previous report, much thought went into the design of 7IM’s current governance structure and the underlying processes. We believe they support our targets and ambitions with regard to stewardship in two ways. First, the roles and responsibilities of these two committees have been formalised. Second, stewardship metrics have been incorporated into the objectives and reviews of the key people involved. We continue to monitor our stewardship governance to ensure it remains fit for purpose and adequately covers both 7IM’s stewardship objectives and the full suite of potential harms to which it and our clients are exposed. Enhancements were made to the Risk Management Framework and systems to support key risk management processes, explained in our 2024 Stewardship Report.
SDR Labelling:
Not eligible to use label (out of scope)
Literature
Fund Holdings
Voting Record
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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|---|---|---|---|---|---|---|---|---|
7IM Responsible Choice Model Portfolios |
Sustainability Tilt | Not eligible to use label (out of scope) | DFM/Portfolio | Global | Multi Asset | 24/12/2020 | Sep 2025 | |
ObjectivesFund objective of income and capital growth depends on the risk profile of the model portfolio. More information can be found in the factsheets. |
Fund/Portfolio Size: £56.00m (as at: 31/08/2025) Total Screened Themed SRI Assets: £114.00m (as at: 31/08/2025) Total Responsible Ownership Assets: £9000.00m (as at: 31/08/2025) Total Assets Under Management: £23000.00m (as at: 31/08/2025) Contact Us: Getintouch@7im.co.uk |
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Sustainable, Responsible &/or ESG OverviewLaunched in December 2020, they aim to get exposure to environmental, social and governance (ESG) leaders, environmental and social themes and impact stocks. To that end, we adopt a rigorous, multi-step process when it comes to selecting third-party funds and products to ensure that only appropriate investments make it into the Responsible Choice Portfolios. The Responsible Choice Models cover the full responsible investment spectrum. They focus on investments that score well on ESG factors and minimise exposure to controversial activities such as Armaments, Tobacco and Thermal coal. We also look beyond these for investments that will have positive long-term impacts on society and the environment. All of this is done without compromising on our investment strategy and risk management. 7IM has a suite of six Responsible Choice Model Portfolios. The portfolios range from cautious to adventurous plus. |
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Primary fund last amended: Sep 2025 |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Sustainability policy
Has policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See individual entry information.
Encourage more sustainable practices through stewardship
Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity Environmental - General
Limits exposure to carbon intensive industries
Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.
Favours cleaner, greener companies
Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Has policies (documented strategies that explain their position) on climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary.
Coal, oil & / or gas majors excluded
Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.
Fossil fuel reserves exclusion
Avoid investing in companies / assets with coal, oil and gas reserves. See individual entry information for further details.
Clean / renewable energy theme or focus
Invest (or may invest) in clean / renewable energy companies and other assets. The proportion directly or indirectly invested in renewable energy may vary over time.
Encourage transition to low carbon through stewardship activity
Encourage the transition to lower carbon activities through asset selection and / or responsible ownership activity.
Invests in clean energy / renewables
Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary. Social / Employment
Favours companies with strong social policies
Aims to invest in assets with high social values - this may include strong human rights, labour standards and equal opportunities or safety related practices.
Health & wellbeing policies or theme
Has policies or themes that set out their approach to health and wellbeing issues, typically aims to invest in companies with high standards - or encourage high standards. Ethical Values Led Exclusions
Tobacco & related product manufacturers excluded
Companies are excluded if they are involved in any aspect of the production chain for tobacco products, including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Tobacco & related products - avoid where revenue > 5%
Companies are excluded if they make more than 5% of their revenue from the manufacture, sale or distribution of tobacco products including cigarettes, vaping, e-cigarettes, chewing tobacco and cigars.
Controversial weapons exclusion
Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.
Armaments manufacturers avoided
Avoids companies that manufacture weapons intended specifically for military use. Strategies vary - may or may not include non-strategic military products.
Alcohol production excluded
Avoids companies that produce alcohol. Strategies vary; some may allow a small proportion of revenue to come from this area.
Gambling avoidance policy
Avoids companies with significant involvement in the gambling industry. Some may allow a small proportion of revenues to come from this area.
Pornography avoidance policy
Avoids companies that derive significant income from pornography and related areas. Strategies vary. Human Rights
Modern slavery exclusion policy
Has a policy which excludes assets with involvement in Modern Slavery Meeting Peoples' Basic Needs
Demographic / ageing population theme
Has a thematic investment approach focusing on the ‘silver economy’ - in particular (typically) the issues and opportunities presented by changing demographics. This could include finance, healthcare and medicines and/ or longevity science to extend lifespans. Strategies vary.
Healthcare / medical theme
Healthcare and or medical theme or area of investment - may have a single or many themes Gilts & Sovereigns
Invests in gilts / government bonds
Invest in loans issued the government, commonly known as gilts or government bonds. These may or may not be ringfenced for specific projects (see additional options).
Gilts / government bonds - exclude some
Avoids investing in 'some' gilts or government bonds. Strategies vary, but this may relate to avoiding specific countries or particular reasons for bond issuance. 'Green gilts' for example would be likely to be acceptable.
Invests in sovereigns subject to screening criteria
Invest in financial instruments issued by governments, but will only hold those that meet certain environmental and or social criteria. This may, for example mean certain assets are excluded in line with eg Freedom House research. Strategies vary. Banking & Financials
Invests in banks
Can include banks as part of their holdings / portfolio.
Invests in financial instruments issued by banks
Invests in financial instruments (cash, derivatives and / or foreign exchange) issued by banks. Strategies vary. Governance & Management
Avoids companies with poor governance
Avoids investing in companies with poor governance practices.(e.g. board structure, management practices etc.) Views may however vary on what counts as 'poor' practices - and funds may not immediately divest as they may prefer to work to encourage higher standards.
Encourage board diversity e.g. gender
Encourage the companies they invest in to have more diverse board structures (e.g. more women on boards)
Encourage higher ESG standards through stewardship activity
Aim to encourage higher ESG standards through responsible ownership / stewardship / engagement /voting activity Product / Service Governance
ESG integration strategy
Find fund / asset managers that factor in 'environmental, social and governance' issues as part of their investment decision making process. A focus on 'ESG' typically means a fund is carrying out additional research to help reduce ESG related risks. It does not necessarily mean a focus on sustainability. Strategies vary. See fund literature. Asset Size
Invests in small, mid & large cap companies / assets
Invests in a combination of small, medium and larger (potentially multinational) companies / assets.
Invest in supranationals
Invests in international entities or bodies with agreed remits that are broadly similar to those that may otherwise be undertaken by individual governments eg the UN How The Fund/Portfolio Works
Positive selection bias
Focuses on finding and investing in companies with positive / beneficial attributes. This strategy can be applied in addition to exclusion criteria and engagement/stewardship activity.
Strictly screened ethical investment
Has principle approach to apply positive or negative ethical, social and / or environmental screens. Strictly screened investments are likely to exclude more companies than other related options. Strategies vary.
ESG weighted / tilt
Invest more heavily in assets which have higher ESG ratings/standards or scores and less heavily in companies with lower ESG ratings. Where this is central to the strategy you should expect assets in most sectors. Strategies vary.
ESG risk mitigation focus
Focuses on the careful management of environmental, social and governance (ESG) related risks - typically by avoiding or being underweight in companies seen as posing major risks in these areas (i.e. not necessarily by using themes, exclusions etc).
SRI / ESG / Ethical policies explained on website
Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).
Do not use stock / securities lending
Does not use stock lending for performance or risk purposes. Unscreened Assets & Cash
Assets typically aligned to sustainability objectives 70 - 79%
Holds between 70-79% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets.
Assets typically aligned to sustainability objectives 80 – 89%
Holds between 80-89% of assets which align to the sustainability objectives; which are not being held purely for risk management purposes, such as derivatives and cash equivalent assets. Intended Clients & Product Options
Intended for clients interested in sustainability
Designed to meet the needs of individual investors with an interest in sustainability issues.
Intended for clients interested in ethical issues
Designed for clients who care about ethical and values-based issues, often alongside sustainability issues also.
Intended for clients who want to have a positive impact
Designed to meet the needs of individual investors with an interest in ‘Impact investment’ which help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies regarded as beneficial to people and / or the planet. Strategies vary.
Portfolio SRI / ESG options available
Only applicable for DFM’s & portfolio providers. Finds those that offer an SRI / ESG portfolio option Fund Management Company InformationAbout The Business
Responsible ownership / stewardship policy or strategy (AFM companywide)
Finds fund / asset management companies that have a published company wide stewardship, engagement and / or responsible ownership policy or strategy that covers all investments. Stewardship typically involves encouraging higher ESG standards through voting and dialogue.
ESG / SRI engagement (AFM companywide)
Find fund / asset management companies that actively encourage higher 'environmental, social and governance' and / or 'sustainable and responsible investment' practices across investee companies - typically where the aim is to encourage positive change that is aligned with the best interests of investors. Strategies vary. See additional information and options.
Responsible ownership / ESG a key differentiator (AFM companywide)
Find fund / asset managers that consider responsible ownership and ESG to be a key differentiator for their business.
Responsible ownership policy for non SRI / sustainable options (AFM companywide)
Find options run by managers that apply Responsible ownership or 'Stewardship' policies to all or most of their investment assets. This means active involvement (e.g. voting, dialogue) with the companies across all or most funds, products and services.
Integrates ESG factors into all / most research (AFM companywide)
Find fund / asset management companies that consider environmental, social and governance (ESG) issues when deciding whether or not to invest in a company for all / almost all of their funds and other assets. This is increasingly seen as part of sound risk management.
In-house diversity improvement programme (AFM companywide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Diversity, equality & inclusion engagement policy (AFM companywide)
Find fund / asset management companies that encourage the companies they invest in to have strong diversity, race, gender and other equality policies across all assets held, not simply screened or themed SRI/ESG funds. (ie Asset Management company wide). Collaborations & Affiliations
PRI signatory
Find fund / asset management companies that have signed up to the UN backed 'Principles of Responsible Investment'.
Investment Association (IA) member
Fund management entity is a member of the Investment Association https://www.theia.org/ Resources
In-house responsible ownership / voting expertise
Find fund / asset management companies that employ people to steer and support fund managers in voting shares at company AGM's and EGMs in ways that are consistent with encouraging higher ESG/sustainability standards.
Employ specialist ESG / SRI / sustainability researchers
Find a fund / asset management company that directly employs specialist ESG/SRI/sustainability researchers or analysts. This allows asset managers to discuss environmental, social and governance risks and opportunities directly with companies.
Use specialist ESG / SRI / sustainability research companies
Find fund / asset management companies that makes use of expert external research companies. This can help deliver specialist expertise and means resources are pooled with other investors.
ESG specialists on all investment desks (AFM companywide)
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types) Accreditations
UK Stewardship Code signatory (AFM companywide)
Find fund / asset managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where managers are encouraged to behave like responsible, typically longer term 'company owners'. Engagement Approach
Regularly lead collaborative ESG initiatives (AFM companywide)
Find fund / asset management companies that regularly initiate or run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
Engaging on climate change issues
Fund / asset manager has stewardship /responsible ownership strategy that is focused on addressing climate change with investee assets.
Engaging on biodiversity / nature issues
The fund / asset manager has a responsible ownership / stewardship strategy that focuses on biodiversity and nature issues relating to the assets they invest the aim of which will be to reduce harm and or deliver improvement. Strategies vary. https://tnfd.global
Engaging to encourage a Just Transition
Fund / asset manager has a responsible ownership / stewardship strategy which means they are working to encourage the shift to more sustainable business practices in ways that respect and are sensitive to social issues and the impact change has on people effected by the changes that are taking place. https://www.transitionpathwayinitiative.org/ https://transitiontaskforce.net/
Engaging on human rights issues
Fund / asset manager has responsible ownership / stewardship strategy in place which aims to address human rights issues in investee companies (and potentially their suppliers) with the aim of raising standards
Engaging on labour / employment issues
Fund / asset manager has responsible ownership / stewardship strategy in place that aims to improve labour standards for the benefit of employees in investee companies (and potentially their suppliers)
Engaging on diversity, equality & / or inclusion issues
Fund / asset management company has a stewardship strategy in place which involves working to raise diversity, equality and inclusion standards across investee assets
Engaging on governance issues
Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets
Stewardship escalation policy
Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term. Company Wide Exclusions
Controversial weapons avoidance policy (AFM companywide)
Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles. Climate & Net Zero Transition
Encourage carbon / greenhouse gas reduction (AFM companywide)
Find fund / asset management companies that are working with the companies they invest in to encourage reductions in carbon dioxide and other greenhouse gas emissions.
‘Forward Looking Climate Metrics’ published / ITR (AFM companywide)
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
In-house carbon / GHG reduction policy (AFM companywide)
Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions. Transparency
Publish responsible ownership / stewardship report (AFM companywide)
Find fund / asset management companies that publish a report detailing their responsible investment ownership - also known as 'Stewardship' - activity.
Full stewardship / responsible ownership policy information on company website
Find fund / asset management companies that publish information about their sustainable and responsible investment strategies on their company website.
Publish full voting record (AFM companywide)
Fund / asset management companies that publish a full record of how they vote their shares at AGMs (annual general meetings) and EGMs (extraordinary general meetings). Voting strategies have an important role to play encouraging higher environmental, social and governance standards. Sustainable, Responsible &/or ESG Policy:The Manager starts the investment process by identifying the best mix of asset classes to create a long-term strategic asset allocation (SAA) customised for each 7IM risk profile. The Manager will then look to make measured deviations from the SAA on a tactical basis, with the aim of enhancing the return and/or reducing the risk for a given profile. Once this Tactical Asset Allocation (TAA) is established, a portfolio is then constructed with funds selected by the Manager to populate the TAA. Our portfolios cover the full responsible investment spectrum.
The portfolios focus on investments that score well on ESG factors and aim to avoid companies that produce products like weapons, tobacco and thermal coal. We also look for investments that will have a positive long-term impact on society and the environment. All of this is done remaining true to our investment strategy and careful management of risks. At 7IM, we are committed to fighting climate change in how we run our business and in our investments. The Responsible Choice Models are designed to reduce portfolio carbon emissions by at least 40%, compared with our standard models. Process:More detail can be found here: https://www.7im.co.uk/media/2c1bkokz/7im-responsible-choice-screening.pdf 1. Negative screening We apply specific exclusions on company shares, corporate bonds and other funds to keep exposure to controversial activities to a minimum. These controversial activities are outlined below:
In respect of company shares and corporate bonds, the maximum revenue limit for any company is 10%. In respect of investments in other funds, there may be differences in the revenue limits. Further details are provided in Responsible Choice Screening Report. In any event, we limit the total exposure to companies linked to the excluded activities to 1%. If the aggregate portfolio exposure to the exclusions outlined above breaches this 1% tolerance, we will resolve any issue as soon as is practicably possible. 2. Positive Selection Active funds When selecting collective investment schemes managed by third-parties, we try and identify managers that have the following characteristics:
The purpose of the fund selection process from an ESG perspective is to identify an investment that has the people, process and expertise in place to invest sustainably. We explain this below and use Morningstar, Bloomberg and ESG Manager to validate this due diligence.
When a new fund is proposed, we follow a rigorous review process whereby the investment manager and the sector specialist with responsibility for the asset class at 7IM meet the fund managers of the fund. At that point, we explore the fund investment process and philosophy, strength of the team managing the fund, years of experience, research resources, risk analysis and performance attribution. All this is captured in an extensive due diligence document which highlights potential issues to pay particular attention to. Post investment, the performance is monitored using style-adjusted benchmarks on a fortnightly basis at our Portfolio Management Committee. We meet with the managers at least once a year, or on an ad-hoc basis if there is an issue which needs to be explored. We also review a fund manager’s and the strategy’s progress in ESG terms. Passive funds Passive funds, which include exchange-traded funds and open-ended funds, are selected on the basis that they track recognised ethical or socially responsible indices. These passive funds typically use both negative and positive screening to filter the best companies in the broader index. In some cases, we need to use a passive fund to access a particular sustainable theme in the portfolio. In the cases where the fund doesn’t track an ethical or socially responsible index, we must judge whether the index meets certain ESG characteristics. To do this, we ensure it has at least an ‘A’ ESG rating on MSCI’s fund rating tool and has a very low potential for exposure to controversial weapons, tobacco or other controversial activities
If the product is following a sustainable benchmark, we meet with the manager to find out how the benchmark is constructed, focusing on the negative and positive screens that are in place. We also speak with the manager to see how the index rules have changed over time and how they may develop in the future. We also review a passive fund manager’s and the strategy’s progress in ESG terms. Resources, Affiliations & Corporate Strategies:At the end of 2024, the corporate governance framework was as follows:
Stewardship and Responsible Investing 7IM underwent ownership and senior leadership changes over the course of 2023 and this was finalised in early 2024. Ontario Teachers’ Pension Plan Board (“Ontario Teachers’” or “OTPP”) has acquired a majority stake in 7IM, from Caledonia Investments plc (“Caledonia”). The strong cultural alignment between the two entities under our updated ownership structure has reinforced our dedication to responsible business practices and facilitate positive outcomes for clients. A key focus for us is to strengthen the functions of committees to ensure the full integration of ESG considerations across the business and investments. Revisions to sustainability governance within 7IM were approved and implemented in early 2024. The below highlights the structure of our Sustainability Committee as of December 2024. The Sustainability Committee was set up in 2020 and reports to the 7IM ExCo. The objective of the Committee remains the same. The Committee is held accountable for pulling together and embedding our commitments within our culture and related groups and activity and includes people from across the whole business.
The Sustainability Committee is chaired by Russell Lancaster (Managing Director, Platform & Intermediary Partnerships, ExCo member). The Sustainability Committee’s responsibilities include: i) to act as guardian of the 7IM Stewardship Code and the Sustainability Framework; ii) to review and recommend changes to 7IM’s sustainability strategy and policy, to ensure that standards of business behaviour are up to date and reflect best practice; iii) to introduce to 7IM best practice thinking and ongoing awareness of global developments in sustainability and Corporate Social Responsibility (CSR); and iv) to make sure the 7IM culture is respected and advanced across the firm. Through 2024, we refined 7IM’s Sustainability Framework & Strategy, explained further on p. 33. Investment stewardship and ESG integration at 7IM are managed by the ESG Investment Committee, also set up in 2020. It reports to the Sustainability Committee and to the Investment Committee, which is the senior decision-making body for all 7IM’s investments and is ultimately responsible for investment performance. The ESG Investment Committee is based in the Investment Management team and has five members. It includes representatives from every stage of the investment process at 7IM: Strategic Asset Allocation, Tactical Asset Allocation, Portfolio Management and Investment Risk. A member of the Investment Committee also sits on the ESG Investment Committee.
Stewardship governance We reviewed and upgraded our stewardship governance framework in 2020 to support 7IM’s stewardship more effectively and explicitly. At the corporate level, as noted earlier, the Sustainability Committee is responsible for stewardship and related issues. The Sustainability Committee is chaired by a member of ExCo. At the investment level, the ESG Investment Committee ensures full integration of stewardship through our investment processes, overseen by the Investment Committee. As discussed in our previous report, much thought went into the design of 7IM’s current governance structure and the underlying processes. We believe they support our targets and ambitions with regard to stewardship in two ways. First, the roles and responsibilities of these two committees have been formalised. Second, stewardship metrics have been incorporated into the objectives and reviews of the key people involved. We continue to monitor our stewardship governance to ensure it remains fit for purpose and adequately covers both 7IM’s stewardship objectives and the full suite of potential harms to which it and our clients are exposed. Enhancements were made to the Risk Management Framework and systems to support key risk management processes, explained in our 2024 Stewardship Report. SDR Labelling:Not eligible to use label (out of scope) LiteratureFund HoldingsVoting Record |
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