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Sarasin Climate Active Endowment A Acc (Charities)

Logo for Sarasin Climate Active Endowment A Acc
SRI Style: Environmentally Themed
Fund Type: Charities
Region: Global
Asset Type: Mixed Asset
Launch Date: 16/02/2018

SRI / Ethical Overview

Brief SRI / Ethical Overview (text)
(briefly summarise this fund’s ethical/SRI/ESG strategy s in 2-3 paragraphs.)


The Sarasin & Partners’ Climate Active Endowment Fund (the Fund) is a multi-asset fund for charities which aims to bring about, and benefit from, action by businesses to strengthen their resilience to climate risks. Specifically, the Fund aims to promote alignment with the international Climate Accord’s goal of limiting global temperature increases to “well below 2C”, whilst ensuring the companies held are positioning themselves for the transition away from fossil fuels. Wherever information is available, the Fund will also take account of the physical impacts of climate change for companies.


The underpinning philosophy of the Fund is that it is in shareholders’ long-term interests for companies to be run in a way that supports climate stability.


In terms of implementation, the Fund excludes a limited set of companies that derive the bulk of their revenues from the most carbon-intensive fossil fuels (either in the form of reserves or emissions) where we believe long-term prospects for value creation are poor. In the first instance, the Fund will not invest in companies that have more than 5% of their revenue from carbon-intensive oil sands or thermal coal, but then undertakes a more detailed climate stress test to determine how companies would fare as decarbonisation accelerates in line with the ‘well below 2C’ goal.


The Fund emphasizes active engagement with companies that may be negatively exposed to decarbonisation (and physical risks where this is measurable), but where we believe there is an opportunity to build resilience such that the investment proposition is protected. In other words, the Fund invests in companies with attractive prospects for long-term value creation, and understands that management teams often have significant opportunities to respond to climate risks such that the company’s prospects are enhanced.


SRI / themed / ethical assets under management – overview


  • Fund Size (GBP):   As at 31 May 2018    £95mn
  • Total value of SRI/ethical/environmental/ social/ environmental or sustainability themed funds:   ?As at 31 May 2018
    • Sarasin IE Sustainable Global Real Estate Equity  £17mn
    • JSS Sustainable Equity – Real Estate Global SICAV £16mn
    • JSS Sustainable Equity Global Emerging Markets SICAV £41mn
    • Sarasin Responsible Global Equity £54mn
    • Sarasin Responsible Global Equity (Sterling Hedged) £16mn
    • Sarasin Responsible Corporate Bond £161mn
  • Total £305mn
  • Total value of assets covered by any additional ESG or responsible ownership policy:   As at 31 March 2018    £13,619
  • Total assets under management:   As at 31 March 2018     £13,619

SRI Policies (Primary strategy in bold)

  • Tobacco production avoided Find fund options that exclude manufacturers of tobacco (or related) products. This typically relates to ethical funds however funds from other SRI Styles commonly avoid this area also. Strategies vary and funds may invest in retailers of such products (e.g. supermarkets or hotels.) See fund information for further information.
  • Armaments manufacturers avoided Find ethical fund (and other SRI) options that avoid avoids companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non strategic military products. Read fund literature for specific details.
  • Limits exposure to carbon intensive industries Find environmental, sustainable investment, ethical fund and other options that aim to significantly reduce or limit exposure to carbon intensive industries (ie sectors which are major contributors to climate change). Funds vary - strategies may involve excluding sectors such as coal, oil & gas, mining or airlines - or may indicate a 'best in sector' approach is taken. See fund literature for details.
  • 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.
  • Alcohol production excluded This filter helps you to find ethical funds - and other options - that avoid investment in alcohol production. See fund literature for further information.
  • Fracking and tar sands excluded Find fund options that avoid companies involved in fracking and tar sands - which are widely regarded as more controversial methods of oil and gas extraction.
  • Gambling avoidance policy Find ethical fund options (and other options) that avoid companies with significant involvement in the gambling industry. See fund policy for details.
  • Pornography avoidance policy Find ethical fund option - and in some cases other options - that avoid companies that derive significant income from pornography. See fund details for further information.
  • Positive environmental impact theme Find funds that specifically set out to help deliver positive environmental impacts, benefits or outcomes
  • 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.

SRI Features

  • Balances company 'pros and cons'/best in sector Find ethical funds and other options that consider both the 'positive' things companies do and the 'negative' things they do in order to make balanced, often complex decisions about where they might invest. Such funds often invest in the best/most ethical companies across most industries ('best in sector'), rather than excluding entire sectors. The fund manager may combine this with 'responsible engagement' activity to encourage better business practices. See fund literature for specific policy explanations.
  • Aims to generate positive impacts Find funds that aim to help deliver positive social or environmental impacts or outcomes through their investment decisions - which typically involves holding companies that are viewed as being necessary or beneficial. Strategies and approaches vary. A small number of funds have recently started to measure outcomes (see 'Measures Impacts' in the Policy filter). This is a new area - so most funds do not do this yet. See 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.)
  • Employ external oversight or advisory committee Find funds that have a external committee that helps steer or advise fund managers on SRI policy or strategy related issues. These people may be paid for their time but are not employees of the fund manager.

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.
  • Responsible Ownership policy for non SRI funds Find funds run by fund managers that apply Responsible Ownership or 'Stewardship' policies to all or most of their investment assets. This means that active involvement (e.g. voting, dialogue) with the companies they invest in across funds (not normally limited to ethical or SRI options.) Read fund literature for further information.
  • Integrates ESG factors into all/most fund research Find fund management companies that research environmental, social and governance (ESG) issues when deciding whether or not to invest in a company. This typically applies to all funds, not only those which are promoted as being 'ethical' or 'SRI themed'. This is increasingly often used as a risk management tool.
  • Vote all* shares at AGMs/EGMs This fund manager votes or aims to vote all* the shares they own at Annual General Meetings and Extraordinary General Meetings. A commitment to voting shares is a key indicator of 'responsible share ownership' - where fund managers consider - and express their views on - the key business issues effecting the companies they part own. (*Allowance is made for exceptional situations such as when shares are in the process of being sold.)
  • In house responsible ownership/voting expertise Find fund / fund management companies where there is in-house expertise that enables the fund manager to make their own decisions on issues such as shareholder voting, setting of in-house guidelines - for example - particularly with regard to environmental, social and governance (ESG) issues.
  • Responsible Ownership/ESG a key differentiator The fund managers have said they consider this area to be a key differentiator for their business
  • 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'.
  • Publish Responsible Ownership/Stewardship report Find fund management companies that publish information on their approach to responsible investment ownership - also known as 'Stewardship' - following the introduction of 'the Stewardship Code'. This sets out their approach to voting, dialogue with company management and any related activity. This is publicly available.
  • Publish full voting record Find fund management companies that publishes a full record of how they vote at AGMs and EGMs. This information is publicly available.
  • Review(ing) carbon/fossil fuel exposure for all funds Find funds / fund managers that are reviewing or have reviewed their exposure to carbon intensive industries including (but not only) mining, oil and gas companies. This work is being carried out in the context of climate change related concerns, and may often reference international agreements.
  • Regularly lead collaborative ESG initiatives Find funds managed by fund management companies that regularly initiate or help run industry wide (collaborative) investor projects aimed at raising environmental, social and governance standards amongst investee companies.
  • 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.
  • Fund EcoMarket sponsor/partner Fund management company is supporting this website which aims to raise the profile of and help explain sustainable, responsible and ethical fund strategies. Sponsor funds are listed ahead of other funds and display their company logos.
  • 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
  • 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

The Sarasin Climate Active Endowments Fund will operate a screening policy as follows:


  • No investment in companies with 5% or more of their turnover involved in the mining of thermal coal or tar sands
  • Following engagement, no investment in companies that needlessly emit significant quantities of carbon into the atmosphere, or which do not take seriously the transition to a low carbon economy
  • Qualitative judgments to be considered on a regular basis by the Climate Active Advisory Panel
  • Zero tolerance on tobacco production and manufacturing of tobacco related products
  • No investment in companies that generate significant turnover from the manufacture of arms, alcohol, gambling and pornography


Resources, Affiliations & Corporate Strategies

The majority of our research is undertaken in-house, but we use third-party research to enhance and validate our internal idea generation through specialist input. We also initiate, sponsor or participate in investor, non-governmental and academic discussion fora to ensure that we identify and investigate new opportunities, themes and trends, and are ourselves providing thought-leadership. In other words, our relationship with different external research bodies is often a partnership, allowing us to feed into and help shape broader industry / market thinking, whilst we enhance our own understanding of key themes and issues (policy outreach is a key pillar of our stewardship effort)


At a high level those we interact with include:


  • Listed company management teams.
  • Industry, financial and country specialists.
  • A range of academic and non-governmental research houses.
  • Institutional investor associations and coalitions.
  • Brokers – supporting balance sheet analysis, consensus information


Examples include:


  •  13D Research – Identification and evaluation of early stage concepts and themes
  •  Style Research – Risk, liquidity and correlation analysis
  •  MSCI Group Research screening and ESG analysis services
  •  Governance Metrics international – governance and accounting red flags.
  •  Institutional Shareholder Services Inc– proxy research and voting execution services.
  •  International Corporate Governance Network (ICGN) – international network of governance  professionals offering research and discussion.
  •  Global Investors Governance Network (GIGN) – small investor discussion forum on current  governance issues.
  •  Asian Corporate Governance Association – providing current research on Asian corporate  governance matters, and a platform for engagement with companies and policy-makers in the region.
  •  Centre for the Study of Financial Innovation (CSFI) – Roundtables on key policy matters  impacting the future of finance.


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