RC Brown Investment Management - Bespoke 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 a significant focus on sustainability issues

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

Has a strategy on - and may focus investment on sustainability issues in the property sector - they may eg use GRESB / BREEAM scores to inform investment decisions.

Avoid investment in major coal, oil and/or gas (extraction) companies. Strategies vary.

Avoid companies involved in fracking and tar sands - which are widely regarded as controversial methods of oil and gas extraction. Strategies vary.

Avoid companies that are involved in extracting oil from the Arctic regions.

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.

Has a policy which describes the avoidance or limited investment in the nuclear industry. Strategies vary.

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

Excludes companies / assets with indirect involvement in fossil fuel exploration. This may relate to providers of finance and / or insurance and providers of other services.

Has a policy that explains their position on which mining companies they may or may not invest in. Typically this may mean only investing in assets with high environmental and social standards. This is a growing concern given demand for rare earth metals eg lithium, cobalt.

All mining companies excluded

Has policies that set out their position on ethical or 'personal values' based issues. Strategies vary.

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.

Does Not exclude manufacturers of products intended for use in armaments and weapons. So may invest in them

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

Does Not exclude 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 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 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. Strategies may vary, eg where testing is required by law.

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

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.

Does not invest in, or excludes, gilts and/or government bonds.

Can include banks as part of their holdings / portfolio.

Does not invest in banks.

Avoids banks which finance fossil fuels extraction (coal, oil, gas)

Invest in banks and other financial institutions that implement the Task Force on Climate Related Financial Disclosures recommendations on climate change related financial disclosures - which aim to help financial markets measure and respond to climate risk.

Exclude all companies in the banking, insurance and finance sectors.

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

Avoids banks that have a large part of their loan book (or other assets) invested in fossil fuels companies - particular coal, oil and gas.

Avoids investing in insurance companies, typically because of the organisations they insure. Strategies vary.

Avoids investing in insurance companies that insure major fossil fuels companies – particularly coal, oil and gas. Strategies (eg definition of ‘major’) vary.

May invest in insurance companies.

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

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

Invests mainly in larger companies / assets. (e.g. over circa £5-£10bn)

Has SRI strategies which focus their investment stock selection on small or mid cap companies / assets. (e.g. below circa £10bn)

Invests in loan stock that is exclusively used to finance environmental and social projects. See ICMA Sustainable Bond Guidelines.

Invests in loan stock that is supporting or enabling the shift towards a cleaner, more sustainable future. Strategies vary significantly and may or may not be linked to specific outcomes.

Invests in assets that focus on improving the marine environment – for both wildlife and the people whose livelihoods directly depend on it.

Invests in green bonds (also known as climate bonds) which encourage sustainability and support climate related or special environmental projects.

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.

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

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 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.

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.

Holds at least 90% 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.

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.

Designed to be appropriate for vegetarians and vegans - be aware that strategies may vary

Has attributes that commonly suit the aims of investors of faith - although they may not be specifically marketed as being only for religious investors. Strategies vary (as do investor aims).

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

Find fund / asset management companies that are smaller or specialise in particular areas - notably, ideally ESG related. Strategies vary.

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.