Alpha Beta Partners - Responsible Future Portfolios

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.

Has documented policies or thematic investment approaches supporting investment in more sustainable, greener transport methods. These will typically set out a preference for companies that run, enable or support more sustainable methods of transport.

Aim to encourage higher sustainability standards through responsible ownership / stewardship / engagement / voting activity

Use the UN Global Compact to inform or help direct where they can or cannot invest. Will typically not invest in companies with significant breaches (low standards) - strategies vary. (The UNGC covers a wide range of issues - search 'UNGC'). See https://unglobalcompact.org/

Aim to invest (and manage assets) in ways that help to address all or some of the UN's Sustainable Development Goals (SDGs). See https://sdgs.un.org/goals).

Publicly report performance against named sustainability objectives

Has a theme or investment strand focused on the shift to a circular economy - where products are reused and recycled not incinerated or dumped. See eg https://www.ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview

Options that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Strategies vary.

Has a policy or theme that relates to managing natural resources more efficiently. Strategies vary. See individual entry information.

Aims to invest in companies with strong or market leading environmental policies and practices. Strategies vary. See individual entry information for more detail.

Has a written policy or theme focused on waste management - typically to support or encouraging higher levels of recycling and better efficiency / reducing waste. Strategies vary.

A significant focus on investments that aim to protect, improve and / or restore natural habitat.

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.

Has an energy efficiency theme - typically meaning that the manager is focused on investing in organisations that manage - or help others to manage - energy use more carefully and less wastefully - and so reduce greenhouse gas emissions.

Invest in renewable energy companies and / or companies where renewable energy is a significant part of their business. Strategies vary.

Has a policy or theme which sets out their position on investment in companies researching/developing hydrogen as an energy solution.

Excludes companies and other assets with direct involvement in fossil fuel exploration (eg coal, oil and gas companies)

Has policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and/or adherence to internationally recognised codes such as the UN Global Compact). Strategies with social policies typically avoid companies with low standards and/or work to encourage higher standards. See fund information for detail.

Has a labour standards policy - likely to mean they will invest in / favour companies that have higher employment related standards and avoid those with low standards. Strategies vary. See eg https://www.ilo.org/international-labour-standards

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.

Has a written diversity policy – where the manager will aim to select companies with a carefully considered, positive employment standards. This may cover a range of issues including gender, ethnicity, disability, beliefs and sexual orientation.

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 with military contracts. This may include medical supplies, food, safety equipment, housing, technology etc

Has a written civilian firearms exclusion policy - meaning that they will not invest in companies that make (or perhaps also sell) handguns made for non-military users.

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.

Has policies that require specific animal welfare standards to be met. These may reference well-known welfare standards (3Rs - Replace, Reduce, Refine) or certification schemes. Strategies vary.

Avoids companies that test their products on animals for purposes other than medical benefit (e.g. for cosmetics). Strategies vary.

Has policies relating to human rights issues. Typically require companies to demonstrate higher standards, although some managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary.

Has policies to avoid companies that employ children.

Has policies that exclude companies or other assets which operate in, or are owned by regimes which are not democratic, or where people may be oppressed. May use eg. Freedom House research. Strategies vary.

Has policies or a theme that relates to the responsible management of supply chains. These may relate to employment issues, notably people employed by their suppliers, as well as the sourcing of materials and products.

Has a policy which excludes assets with involvement in Modern Slavery

Have policies or themes that set out the position on investment in the water sector and/or sanitation. Strategies vary.

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.

Invest in social housing property freeholds. Strategies vary.

Focuses on (ie directs a significant proportion of its investment towards) green infrastructure, eg the clean energy supply chain.

Has a theme that may direct investment towards newer forms of food such as plant based meat alternatives. May have one or many themes.

Has a responsible food production or agriculture theme or strand of investment. May have a single or many themes.

Healthcare and or medical theme or area of investment - may have a single or many themes

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).

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.

Can include banks as part of their holdings / portfolio.

Excludes financial services companies with widely criticised, aggressive lending practices where interest rates are typically very high, (eg ‘doorstep lending’)

May invest in insurance companies.

Has policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary.

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.

Exclude companies that are subject to United Nations sanctions. See eg https://main.un.org/securitycouncil/en/content/un-sc-consolidated-list

Has policies explaining how managers will respond to assets / companies that do not comply with relevant anti-bribery and anti-corruption standards or laws. Strategies vary; options include stewardship/ engagement and divestment - or a combination.

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

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.

Has policies that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary.

Aims to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Investments that aim to deliver positive impacts and measure those impacts may be referred to as 'Impact' - although impact measurement is not restricted to Impact investments. Strategies vary.

Specifically sets out to help deliver positive environmental impacts, benefits or 'real world' outcomes.

Specifically states that they aim to deliver positive social (i.e. people related) impacts and/or outcomes.

Directs investment towards companies where a major part of their business is about solving environmental challenges. e.g. companies helping to address climate change.

Invest in companies where a major part of their business is specifically aimed at helping to address social challenges. e.g. companies helping to address poverty.

Specifically sets out to invest in companies that are regarded as 'disrupting' existing business practices - typically through the development of innovative (sustainability aware) products and/or practices.

Aims to deliver positive environmental and or social impacts (real world benefits) through its engagement with investee assets

Invests more than 50% of capital in assets which are regarded as being significantly focused on providing solutions to environmental or social challenges. Strategies vary.

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 'ethical approach' to avoid companies by using negative screening criteria. Strategies vary.

Has some exclusions - typically for example excludes tobacco or companies that breach commonly adopted standards or norms such as the UN Global Compact.

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.

Aims to avoid companies that do significant harm. This originates from the EU’s sustainable finance ‘DNSH’ (do no significant harm) work, which is not necessarily used by UK investors.

Invests in assets which can be 'mapped' (reviewed) their investment selection and management strategies to identify which of the UN Sustainable Development Goals (SDGs) the fund is helping to address.

Investment selection process uses internationally agreed 'norms' (e.g. United Nations Global Compact - UNGC - or the UN Sustainable Development Goals - SDGs) alongside additional SRI criteria such as positive or negative stock selection policies and/or stewardship strategies.

Invests in assets which have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) together with additional criteria such as positive and/or negative screens, themes and stewardship strategies.

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).

Has different risk options for the same investment strategy

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.

May invest in assets that have not passed its usual sustainability criteria or screening standards in order to help manage investment risk. This may be limited or significant. Strategies vary.

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

Only applicable for DFM’s & portfolio providers. Find service providers who offer bespoke ('personalised') SRI / ESG portfolio options

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 fund / asset management companies that aim to align all their investments (across all funds) to help meet the aims of the UN Sustainable Development Goals.

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.

Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)

Fund management entity offers unstructured intermediary training on sustainable investment (ie for financial advisers and wealth managers)

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.

Fund / asset manager has achieved accreditation which requires them to articulate their purpose and have high environmental and social standards.

Find fund / asset management companies (not funds) that avoid investment in 'controversial weapons' across all of their funds and other investment vehicles.

Find fund / asset management companies that avoid investment in tobacco (manufacturing) companies across all their assets.

Find funds / asset managers that are reviewing, or have reviewed, their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. (Typically with reference to climate change.)

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.

Find fund / asset management companies that will supply information about their sustainable and responsible investment activity on request.