Dimensional Global Core Equity Lower Carbon ESG Screened Fund

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.

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/

Has policies which relate to environmental issues. These will typically set out their stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary.

Has documented policies explaining the approach to environmental damage and pollution. Strategies vary.

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.

Has a written biodiversity policy or theme typically aimed at supporting, encouraging and improving environmental protection and safeguarding the natural world (sometimes referred to as 'natural capital'). See eg https://www.un.org/en/climatechange/science/climate-issues/biodiversity

Has policies designed to address involvement in irresponsibly managed palm oil or other forms of deforestation (typically exclusion led). Strategies vary.

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.

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.

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.

Excludes companies which make controversial weapons such as landmines, cluster munitions and chemical weapons.

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 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.

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 a policy which excludes assets with involvement in Modern Slavery

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

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.

Invests in a combination of small, medium and larger (potentially multinational) companies / assets.

Has principle 'ethical approach' to avoid companies by using negative screening criteria. 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.

Makes stock selection (and ongoing management) decisions based on ESG data or company ratings (normally supplied by third parties) rather than focusing on what individual companies do, how they operate or their plans for the future

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.

Considers both the 'positive' and 'negative' aspects of company behaviour and makes balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.

Publish explanations of their ethical, social and/or environmental policies online (i.e. investment decision making strategies/ buy/sell &/or asset management strategies).

Uses specialist strategies to aid performance which involve ‘lending’ assets to others at specific points in time.

Designed to meet the needs of individual investors with an interest in sustainability issues.

Find options classified under Article 8 of the EU’s SFDR (Sustainable Finance Disclosure Requirements). Article 8 of the SFDR is a set of requirements that apply to financial products that 'promote' environmental or social characteristics together with high governance. These rules do not currently apply to UK products so many managers may leave this field blank.

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.

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 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/

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 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'.

Fund / asset managers have stewardship strategies in place that focus on improving governance standards across investee assets

This fund / asset manager may vote differently for different clients or regions. See fund manager stewardship policy for further information.

Escalation policies describe how a manager will proceed if stewardship / engagement activity is not successful in the short term.

Find fund / asset management companies that are working to reduce their own (fund management company) carbon/greenhouse gas emissions.

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.