Fund Name | SRI Style | Product | Region | Asset Type | Launch Date | |
---|---|---|---|---|---|---|
EdenTree Responsible & Sustainable Global Equity Fund |
Ethical | OEIC/Unit Trust | Global | Equity | 13/09/1999 | |
Fund Size: £256.40m Total screened & themed / SRI assets: £1981.50 Total Responsible Ownership assets: £1782.20 Total assets under management: £3763.70 As at: 31/03/23 Contact: adam.kelly@edentreeim.com |
||||||
OverviewWe follow a ‘Performance with Principles’ investment approach. We hold to the belief that long-term returns are more likely to be achieved by investing responsibly in sustainable businesses and therefore seek companies that generate returns without future detriment to the environment and society. We consider both the financial and responsible research, risks and opportunities, with the goal of identifying the best opportunities to deliver long-term returns for clients.
|
||||||
FiltersFund informationSustainabilityEnvironmental policy Sustainability policy Limits exposure to carbon intensive industries Resource efficiency policy or theme Sustainable transport policy or theme Sustainability theme or focus Environmental damage and pollution policy Favours cleaner, greener companies Waste management policy or theme Sustainability focus Encourage more sustainable practices through stewardship Circular economy theme Nature & BiodiversityDeforestation / palm oil policy Plastics policy / reviewing plastics Biodiversity / nature policy Nature / biodiversity based solutions theme Nature / biodiversity focus Responsible palm oil policy Sustainable fisheries policy Nature / biodiversity protection policy Water stewardship policy Climate Change & EnergyNuclear exclusion policy Coal, oil & / or gas majors excluded Climate change / greenhouse gas emissions policy Invests in clean energy / renewables Fracking and tar sands excluded Clean / renewable energy theme or focus Arctic drilling exclusion Fossil fuel reserves exclusion Energy efficiency theme Require net zero action plan from all/most companies Encourage transition to low carbon through stewardship activity Fossil fuel exploration exclusion - direct involvement Targeted Positive InvestmentsInvests >25% of fund in environmental/social solutions companies Human RightsHuman rights policy Child labour exclusion Responsible supply chain policy or theme Oppressive regimes (not free or democratic) exclusion policy Modern slavery exclusion policy Social / EmploymentSocial policy Diversity, equality & inclusion Policy (fund level) Labour standards policy Favours companies with strong social policies Meeting Peoples' Basic NeedsWater / sanitation policy or theme Plant based / smart food production theme Responsible food production or agriculture theme Healthcare / medical theme Ethical Values Led ExclusionsEthical policies Animal welfare policy Tobacco and related product manufacturers excluded Armaments manufacturers avoided Alcohol production excluded Gambling avoidance policy Pornography avoidance policy Animal testing - excluded except if for medical purposes Civilian firearms production exclusion Banking & FinancialsPredatory lending exclusion Governance & ManagementGovernance policy Anti-bribery and corruption policy Avoids companies with poor governance Digital / cyber security policy Encourage board diversity e.g. gender Encourage TCFD alignment for banks & insurance companies UN sanctions exclusion Encourage higher ESG standards through stewardship activity Fund GovernanceESG integration strategy ESG factors included in Assessment of Value (AoV) report Employ external (fund) oversight or advisory committee Asset Size & MetricsOver 50% large cap companies Invests in small, mid and large cap companies Invests mostly in large cap companies How The Fund WorksSingle resource theme or focus Strictly screened ethical fund Positive selection bias Negative selection bias Norms focus Combines norms based exclusions with other SRI criteria Combines ESG strategy with other SRI criteria ESG weighted / tilt Focus on ESG risk mitigation Significant harm exclusion SRI / ESG / Ethical policies explained on website Assets mapped to SDGs All assets (except cash) meet published sustain'y criteria Impact MethodologiesAims to generate positive impacts (or 'outcomes') Positive environmental impact theme Positive social impact theme Invests in environmental solutions companies Invests in social solutions companies Invests in sustainability / ESG disruptors Aim to deliver positive impacts through engagement Labels & AccreditationsRSMR rated (OEIC funds only) Eurosif Transparency Intended Clients & Product OptionsFaith friendly Intended for investors interested in sustainability Available via an ISA (OEIC only) Fund management company informationAbout The BusinessESG / SRI engagement (AFM company wide) Responsible ownership / stewardship policy or strategy (AFM company wide) Responsible ownership / ESG a key differentiator (AFM company wide) Diversity, equality & inclusion engagement policy (AFM company wide) Sustainable property strategy (AFM company wide) Vote all* shares at AGMs / EGMs (AFM company wide) Specialist positive impact fund management company Boutique / specialist fund management company Integrates ESG factors into all / most fund research In-house diversity improvement programme (AFM company wide) Just Transition policy on website (AFM company wide) Invests in newly listed companies (AFM company wide) Invests in new sustainability linked bond issuances (AFM company wide) Offer structured intermediary training on sustainable investment Offer unstructured intermediary sustainable investment training ResourcesIn-house responsible ownership / voting expertise Employ specialist ESG / SRI / sustainability researchers Use specialist ESG / SRI / sustainability research companies ESG specialists on all investment desks (AFM company wide) Collaborations & AffiliationsPRI signatory UKSIF member Climate Action 100+ or IIGCC member Fund EcoMarket partner Investment Association (IA) member AccreditationsUK Stewardship Code signatory (AFM company wide) PRI A+ rated (AFM company wide) Engagement ApproachRegularly lead collaborative ESG initiatives (AFM company wide) Encourage responsible corporate taxation (AFM company wide) Engaging on climate change issues Engaging to reduce plastics pollution / waste Engaging on biodiversity / nature issues Engaging to encourage a Just Transition Engaging on human rights issues Engaging on labour / employment issues Engaging on diversity, equality and / or inclusion issues Engaging on governance issues Engaging on responsible supply chain issues Company Wide ExclusionsReview(ing)carbon / fossil fuel exposure for all funds (AFM company wide) Coal exclusion policy (group wide coal mining exclusion policy) Coal divestment policy (AFM company wide) Controversial weapons avoidance policy (AFM company wide) Tobacco avoidance policy (AFM company wide) Fossil fuel exclusion policy (AFM company wide) Do not invest in companies with fossil fuel reserves Climate & Net Zero TransitionEncourage carbon / greenhouse gas reduction (AFM company wide) Publish 'CEO owned' Climate Risk policy (AFM company wide) Committed to SBTi / Science Based Targets Initiative TransparencyPublish full voting record (AFM company wide) Publish responsible ownership / stewardship report (AFM company wide) Full SRI policy information on company website Full SRI policy information available on request Paris Alignment plan publicly available (AFM company wide) |
||||||
PolicyThe Fund seeks to avoid investment in certain areas such as companies which have a material involvement (10% or more) in alcohol and tobacco production, conventional weapon production, gambling, publication of violent or explicit materials, intensive farming, fossil fuel exploration and production and high interest (sub-prime) lending. The Fund will seek to avoid companies with material operations in oppressive regimes. The Fund has a proprietary means of assessing oppressive regime risk, and operates this on a case by case basis.
|
||||||
ProcessThe fund style is that of long-term value. We look for companies that offer strong sustainable attributes, coupled with value characteristics. Using our proprietary responsible & sustainable process, deploying both negative and positive screens, we look to identify companies that provide solutions that address long-term thematic global issues. As the Fund aims to identify and invest in companies that create products or solutions to that enable a more sustainable and responsible future, investment idea generation can come from a variety of sources, including our in-house integrated sustainable investment research, which is completed by fund managers, investment analysts and the Responsible Investment team, as well as company meetings, company reviews and third party research. A significant amount of idea generation is derived from our thought-leading proprietary research on structural challenges such as Natural Capital, Sustainable Cities and Cybersecurity, which is ultimately distilled into Insights and White Paper publications. Thematic research of this nature is a collaborative effort between both the Investment Team and the Responsible Investment Team, with the investment analysts and fund managers undertaking fundamental research at a company level. Most idea generation, the team will undertake research around the industry and stock’s fundamentals. The research output is documented within a standardised process template, which examines the following areas: Business model sustainability, source of competitive advantage, risk or opportunities from disruption, assessment of competition landscape and barriers to entry; supply chain analysis, volatility of cost base/inputs and margin stability through cycle; breadth of customer demand and pricing; and other potential macro-economic influences. In terms of financial health of the company, balance sheet analysis examines levels of gearing through cycle; nature of covenants, interest cover; off balance sheet leverage; contingent liabilities; on balance sheet pension scheme liabilities funding; and known asset backing.
Our RI team regularly publish expert briefs and opinion pieces, which help to inform our clients and drive idea generation within our investment team. The RI team also produces our flagship EdenTree Insight publications from time to time, which provide a sustainable perspective on some of the biggest challenges facing our world today and how we, as responsible and sustainable investors can be a part of the solution. Our fund managers also regularly write on a range of industry topics, from macro-economic and geo-political viewpoints through to individual stock ideas and how they are finding opportunities that align with our responsible and sustainable investment approach. As well as our own in-house research (including special thematic reports) we use a range of sources, including independent data from ISS ESG in respect of Environmental, Social, Governance (ESG) issues, although we do not rely on ISS ratings for our decision-making process. |
||||||
Resources, Affiliations & Corporate StrategiesEdenTree has a specialist, dedicated RI Team which comprises five people.
Our basic ESG risk analysis is provided by ISS-ESG which provides core ESG disclosure data as well as rating each company within an industrial sector peer group across E, S & G pillars; this rating is used solely as a guide as suitability is driven by our in-house screening process. Our RI team conducts additional research and analysis from publicly available materials including:
EdenTree has been a proud signatory of the PRI since 2012. For more information on how EdenTree works with the PRI please see our PRI transparency report here and PRI Assessment Report here Whilst asset managers are able, and often choose, to omit or hide specific sections of the PRI Transparency Report, EdenTree publish the full report for complete transparency. For the PRI Assessment Report, we also publish the full report here. In 2021, EdenTree achieved a 4 star rating for our Investment & Stewardship Policy. Other signatory partnerships include:
The Responsible Investment Advisory Panel (“Panel”) meet three times each year to review the Responsible & Sustainable Fund portfolios, the recent investment decisions and to discuss the latest responsible and sustainable research and trends. The purpose of the Panel is to:
The Panel will provide advice to the RI team in a number of ways:
The Panel is made up of a number of industry experts, including:
|
||||||
DialshifterThis fund is helping to ‘shift the dial from brown to green’ by… Our responsibility criteria has six different considerations which assess ESG risks and reflect our commitment to responsible investment. One of the six criteria is environment and climate, including support for biodiversity, climate change impact and carbon footprint, water conservation, air pollution, manage waste, recycling, and support renewable energy. We have four more thematic positive investment themes - one of which is sustainable solutions - this includes products and solutions, the circular economy, green finance, green buildings, renewable energy, water and waste.
Our organisation is helping to support the Paris Climate Agreement and the Race to Net Zero by… We have close to 100% of assets (98%) managed in an ethical and sustainable way. We carefully scrutinize whether emissions reductions targets are science based, and all funds are currently in-line with the Paris Agreement target of no more than 1.5 degrees of warming. Our parent the Benefact Group aims to deliver a zero direct impact (Scope I & II) by 2023, and net zero (Scope III) by 2040. EdenTree will support the Group in its ambitions, whilst developing its own thinking to support investing clients. As a Group subsidiary we form part of the Group’s overall Net Zero ambition. |
||||||
LiteratureLast amended: 11/10/23 10:09 |
This report is for information purposes only and is intended to complement existing services used by UK based financial advisers only. sriServices is not authorised to give investment advice. The information on this site does not in any way constitute advice, recommendation or endorsement of any product or service. Investment decisions should not be based on this information alone. sriServices cannot be held in any way responsible for decisions made or advice offered as a result of using this site.
Whilst we take care to ensure information is as accurate as possible at time of publication we recommend you/financial advisers confirm specific fund details with fund providers. Please see www.sriServices.co.uk for additional information and for our contact details.
© Copyright sriServices 2024
05/06/2024