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Impax Environmental Markets plc (Investment Trust)

SRI Style: Environmentally Themed
Fund Type: Investment Trust
Region: Global
Asset Type: Equity
Launch Date: 22/02/2002

SRI / Ethical Overview

Impax Asset Management is solely focused on investing in Resource Efficiency and Environmental Markets. Impax's listed equity strategies seek out mispriced companies that are set to benefit from the long-term trends of rising global populations and wealth, changing demographics, urbanisation, increasing consumption, and the resultant increases in resource demand. Investment is focused on a small number of deeply researched global equity strategies across energy efficiency, alternative energy, water, waste, food and agriculture related markets

 

SRI / themed / ethical assets under management – overview

  • Fund Size (GBP):   £515.6 million (as at 31 July 2018)
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds:  £12.4 billion (as at 31 July 2018)
  • Total value of assets covered by any additional ESG or responsible ownership policy:   N/A
  • Total assets under management:   £12.4 billion (as at 31 July 2018)

 

 

SRI Policies (Primary strategy in bold)

  • Environmental policy Find investment funds with environmental policies - ie that consider issues such as pollution, climate change, resource management, environmental impact. This will include options from all of the different SRI Styles, including funds where their core strategy is to focus on other areas such as ethical funds. See fund information for fund specific policy details.
  • Sustainability policy Find fund options that consider issues relating to the sustainability agenda (e.g. resource management, environmental impact, climate change and/or social issues such as equal opportunities, human rights and adherence to recognised codes). This will include funds from all of the different SRI Styles. See fund information for explanations of the different strategies.
  • Social policy Find fund options that consider social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). This will include funds in most of the different SRI Styles as this is considered a core issue. See fund information for detail.
  • Governance policy Find fund options that have 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.
  • Climate change / GHG policy Find sustainable investment and ethical fund options that pay significant attention to climate change related issues such as greenhouse gas/carbon emissions. Strategies vary, see fund literature for individual fund information.
  • Invests in clean energy/renewables Find ethical, sustainable investment and other environmentally aware fund options that aim to invest in companies in the clean technology and renewable energy sectors. Fund strategies vary. Some funds may have limited exposure to this area, others may have significant exposure. Check fund literature for details.
  • Human rights Find funds that consider human rights practices when approving companies for investment. Such funds will require decent standards of human rights to be demonstrated - which typically means adherence to international norms as a minimum standard.
  • Child labour exclusion Find funds that have policies in place that ensure they do not invest in companies that employ children.
  • Positive environmental impact theme Find funds that specifically set out to help deliver positive environmental impacts, benefits or outcomes

SRI Features

  • Norms focus Find funds that use internationally agreed standards, conventions and 'norms' to help direct where the fund can and cannot invest (e.g. the UN Global Compact, UN Sustainable Development Goals). Read fund literature for further information.
  • Positive selection bias Find funds where their main 'ethical approach' is to invest in companies that are considered to be positive/good or useful to people and/or the environment. The fund may also have negative avoidance criteria - see fund details to read more about fund strategies.
  • Sustainability themed Find funds where there is a significant emphasis on sustainability issues either as its primary strategy or as a core strategy that compliments other criteria. (This may apply to a number of different SRI Styles). Such funds will consider environmental and social issues when making stock selection decisions. Read fund literature for further information.
  • Favours cleaner, greener companies Find funds that aim to nvest in companies with strong environmental policies and practices. This may mean it invests in smaller companies offering market leading environmental services or products and/or larger companies that are working towards the improved management of their negative impacts. Read fund literature for further information.
  • Favours companies with strong social policies Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.
  • Faith friendly Find funds that have 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). Read fund literature for further information.
  • Responsible ownership / stewardship policy Find funds that have a policy that sets out what they do with regard to responsible investment ownership - also known as 'stewardship'. This typically relates to issues such as dialogue with companies and shareholder voting.
  • ESG integration strategy Find funds that factor in 'environmental, social and governance' issues as part of their investment decision making process. (These typically relate to improved risk management.)
  • Combines ESG strategy with other SRI criteria Find funds that have an ESG strategy (which is typically focuses on avoiding companies that post environmental, social or governance related risks) with additional criteria such as positive and/or negative screens or engagement/stewardship strategies.

Corporate Activity

  • ESG/SRI engagement Find funds and fund management companies that actively encourages higher 'environmental, social and governance' and/or 'sustainable and responsible investment' practices amongst investee companies - when positive change is aligned with the best interest of investors. This may apply to a single fund or a group of funds. Read fund literature for further information.
  • UK Stewardship Code signatory Find fund managers that are signatories to the FRC UK Stewardship Code, which sets out a framework for constructive investor / investee relations where fund managers are encouraged to behave as responsible 'company owners'.
  • PRI signatory Find fund management companies that have signed up to the UN backed 'Principles of Responsible Investment' initiative.
  • Boutique/specialist fund manager Find options offered by smaller, more specialist fund management companies with a significant (or entire) emphasis on sustainable, responsible, ethical, ESG or responsible ownership related investment strategies. Note - strategies vary significantly. Check fund manager supplied links for further information.
  • UKSIF member The fund management company is a member of UKSIF - the UK Sustainable Investment and Finance association
  • Climate Action 100+ or IIGCC member Involved in collaborative institutional investor initiatives that are encouraging companies to address climate change (ie reduce carbon emissions)
  • Encourage board diversity eg gender Fund managers encourage the companies they invest in to have more diverse board structures (eg more women on boards)
  • Encourage responsible corporate taxation Fund management company is working with the companies it invests in to encourage more responsible corporate taxation
  • Encourage carbon / GHG reduction The fund management company is working with the companies it invests in to encourage reductions of carbon dioxide and other greenhouse gas emissions.
  • Employ specialist ESG/SRI/sustainability researchers The fund management company directly employs specialist ESG/SRI/sustainability researchers or analysts
  • Use specialist ESG/SRI/sustainability research companies The company makes use of expert external research
  • In house carbon/GHG reduction policy The fund management company is working to reduce its own carbon/greenhouse gas emissions.
  • Specialist SRI / positive impact fund management company Find fund management companies that specialise in - or focus entirely on - delivering positive impacts or SRI related fund management options
  • Full SRI policy information available on request Information on all selected filter options will be supplied by the fund manager if you ask them to do so

SRI / Ethical Policy

Impax Asset Management is solely focused on investing in Resource Efficiency and Environmental Markets. Impax's listed equity strategies seek out mispriced companies that are set to benefit from the long-term trends of rising global populations and wealth, changing demographics, urbanisation, increasing consumption, and the resultant increases in resource demand. Investment is focused on a small number of deeply researched global equity strategies across energy efficiency, alternative energy, water, waste, food and agriculture related markets.

 

Resources, Affiliations & Corporate Strategies

ESG analysis is an integral part of Impax’s investment process, providing risk mitigation and an important insight into the ‘character’ of a company. A wide range of ESG and non-financial information is incorporated into the ’10-step’ company research process, with companies scored on ESG criteria. This categorization has a direct impact on the permitted exposure to these stocks within portfolios.

 

Impax has an experienced member of the investment team (Lisa Beauvilain, Head of Sustainability & ESG) solely dedicated to ESG analysis. Lisa joined Impax in 2010. Lisa started working in the financial industry in 1999 and previously worked as Executive Director in the Investment Management Division of Goldman Sachs International. Lisa has also worked as an independent consultant focusing on environmental policy research and analysis. She is a Trustee at the International Institute of Environment and Development ("IIED"). Lisa has an MSc in Environment and Development from the London School of Economics and an MSc in Finance from the Hanken School of Economics in Finland.

 

Impax use the following additional research sources:

  • ESG knowledge sharing with investment partners
  • External specialist ESG-research: MSCI ESG Manager, Sustainalytics (UN Global Compact Screen), ISS
  • Sell-side analysis
  • Media searches: Factiva
  • Market Data: FactSet, Bloomberg

 

Impax’s ESG engagement is done both independently as well as through joint representations with other institutions. We are members of, or signatories to the following:

 

  • UN Principles for Responsible Investment (UNPRI)
  • Institutional Investors Group on Climate Change (IIGCC)
  • Investor Network on Climate Risk (INCR)
  • Carbon Disclosure Project (CDP)
  • Council of Institutional Investors (CII)
  • UK Sustainable Investment and Finance Association (UKSIF)
  • Association for Sustainable & Responsible Investment in Asia (ASrIA)
  • USSIF
  • Global Impact Investing Network (GIIN)
  • Task Force on Climate-related Financial Disclosures (TCFD)
  • UK Stewardship Code
  • Plastic Solutions Investor Alliance
  • Workforce Disclosure Initiative
  • Farm Animal Investment Risk & Return (FAIRR)
  • PRI Sustainable Stock Exchanges Investor Working Group (PRI SSE IWG)
  • GRI Waste Disclosures Project Working Group
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