Fund Name | SRI Style | Product | Region | Asset Type | Launch Date | |
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Pictet Global Environmental Opportunities Fund |
Environmentally Focused | SICAV/Offshore* | Global | Equity | 01/10/2014 | |
Fund Size: £6513.00m Total screened & themed / SRI assets: £108000.00 Total Responsible Ownership assets: £202000.00 Total assets under management: £202000.00 As at: 31/03/23 Contact: Contact us: lrichards@pictet.com |
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OverviewOur Global Environmental Opportunities strategy targets capital appreciation by investing in companies who seek to solve environmental challenges through innovation, technology and intelligent use of natural resources. We invest in companies that make a substantial active contribution to solving environmental challenges by providing solutions to others, rather than companies only focusing on minimizing the environmental impact of their own operations.
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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 UN Global Compact linked exclusion policy Sustainability focus UN Sustainable Development Goals (SDG) focus Report against sustainability objectives Encourage more sustainable practices through stewardship Circular economy theme Transition focus Nature & BiodiversityResponsible palm oil policy Genetic engineering exclusion 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 Arctic drilling exclusion Energy efficiency theme Encourage transition to low carbon through stewardship activity Fossil fuel exploration exclusion - direct involvement Fossil fuel exploration exclusion – indirect involvement Targeted Positive InvestmentsEU Sustainable Finance Taxonomy holdings 5-25% of fund assets EU Sustainable Finance Taxonomy holdings >25% of fund assets Invests >25% of fund in environmental/social solutions companies Invests >50% 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 Social / EmploymentSocial policy Diversity, equality & inclusion Policy (fund level) Labour standards policy Favours companies with strong social policies Mining exclusion Meeting Peoples' Basic NeedsGreen infrastructure focus Banking & FinancialsBanking exclusion Exclude banks with significant fossil fuel investments Financial institutions exclusion Exclude banks that finance fossil fuels extraction Governance & ManagementGovernance policy Anti-bribery and corruption policy Avoids companies with poor governance Encourage board diversity e.g. gender UN sanctions exclusion Encourage higher ESG standards through stewardship activity Fund GovernanceESG integration strategy Employ external (fund) oversight or advisory committee How The Fund WorksBalances company 'pros and cons' / best in sector 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') Measures positive impacts Positive environmental impact theme Positive social impact theme Invests in environmental solutions companies Invests in social solutions companies Invests in sustainability / ESG disruptors Described as an ‘impact investment fund’ Aim to deliver positive impacts through engagement Over 50% in assets providing environmental or social ‘solutions’ Labels & AccreditationsRSMR rated (OEIC funds only) Eurosif Transparency SFDR Article 9 fund / product (EU) Intended Clients & Product OptionsIntended for investors interested in sustainability Intended for clients who want to have a positive impact 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 policy for non SRI funds (AFM company wide) Responsible ownership / ESG a key differentiator (AFM company wide) Sustainable property strategy (AFM company wide) Vote all* shares at AGMs / EGMs (AFM company wide) Boutique / specialist fund management company Integrates ESG factors into all / most fund research In-house diversity improvement programme (AFM company wide) Senior management KPIs include environmental goals (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 ResourcesIn-house responsible ownership / voting expertise Employ specialist ESG / SRI / sustainability researchers Use specialist ESG / SRI / sustainability research companies Collaborations & AffiliationsPRI signatory Climate Action 100+ or IIGCC member Fund EcoMarket partner GFANZ member (AFM company wide) UN Principles of Responsible Banking framework signatory-co wide TNFD forum member (AFM company wide) Investment Association (IA) member AccreditationsUK Stewardship Code signatory (AFM company wide) Engagement ApproachRegularly lead collaborative ESG initiatives (AFM company wide) Engaging on climate change issues Engaging with fossil fuel companies on climate change Engaging to reduce plastics pollution / waste Engaging to encourage responsible mining practices 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 mental health issues Engaging on responsible supply chain issues Company Wide ExclusionsCoal exclusion policy (group wide coal mining exclusion policy) Controversial weapons avoidance policy (AFM company wide) Fossil fuel exclusion policy (AFM company wide) Climate & Net Zero TransitionEncourage carbon / greenhouse gas reduction (AFM company wide) Net Zero commitment (AFM company wide) Working towards a ‘Net Zero’ commitment (AFM company wide) Carbon offsetting - offset carbon as part of our net zero plan (AFM company wide) In-house carbon / GHG reduction policy (AFM company wide) Publish 'CEO owned' Climate Risk policy (AFM company wide) Net Zero - have set a Net Zero target date (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 Paris Alignment plan publicly available (AFM company wide) Net Zero transition plan publicly available (AFM company wide) Sustainability transition plan publicly available (AFM company wide) |
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PolicyThe investment theme defines our long-term strategic orientation and sustainability objectives. Investment themes are identified based on our megatrend framework. The strategy aims to capture investment opportunities across all areas of the global industry, whilst making a positive contribution towards a more sustainable world. The strategy focuses on the following areas:
The companies’ business models must have a low environmental impact, as well as driving & benefitting from development of environmental solutions. We only select companies that make a substantial ‘active’ contribution to solving environmental challenges. This is measured by the strategic importance of environmentally related products and services within the company and by the quality and amount of R&D spent in the environmental domain. In order to be eligible in the portfolio, at least 20% of the activities of the firm must be related to products and services actively solving environmental challenges. A dedicated Advisory Board helps the investment managers to track the evolution of the theme and to identify future trends in technology, public policy, and consumption patterns. The Board also helps defining new theme segments. Board members are recognized experts in their respective domain; they often come from academia, NGOs or the private sector. |
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ProcessOur investment approach uses a unique scientific framework for the purpose of universe construction. The framework – Planetary Boundaries – was first published in Nature magazine in 2009 (by Johan Rockström (Stockholm Resilience Centre)). It represents the state of the art in terms of the current scientific consensus regarding which environmental challenges matter most. The planetary boundaries framework identifies nine key environmental dimensions (water, climate change, biodiversity, landuse, nitrogen & phosphorous cycle, ocean acidification, ozone depletion, aerosol loading and chemical pollution) and specifies the respective thresholds that humanity shall not cross, lest it is to cause irreversible environmental damage with potentially catastrophic consequences. The area within the boundaries, where human activities can take place safely is called the ‘safe operating space’. We relate planetary boundaries and safe operating space to subindustries and to individual companies.
This allows us to understand how a company’s products and services, taken over their entire life cycle, impact on the nine key environmental dimensions. We can thus see whether a company’s activities lie within the safe operating space, and whether its business model is rather forfeited or favoured by stricter environmental constraints in the future. We only invest in companies within the safe operating space that provide at the same time make an ‘active’ contribution to solving environmental challenges.
We identify an initial universe of listed companies active in the environmental value chain. Out of 40’000 global companies, approx. 3’500 operate within the safe operating space as defined by the Planetary Boundaries framework.
Only companies with sufficient exposure to environmental solutions are eligible for investment. This includes areas such as energy efficiency, pollution control, water supply & technology, waste management & recycling, sustainable agriculture & forestry and the dematerialized economy. 400 of the firms operating within the safe operating space also make an active contribution to solving environmental challenges. These 400 companies are our investable universe.
We include companies in the investable universe only if at least 20% of the enterprise value (or sales, EBIT, EBITDA, or similar measures) is derived from theme-related activities (“purity” to the theme).
When defining the investment universe of Thematic strategies, we systematically exclude stocks that have negative impacts on the environment or society. If a company’s revenues generated by such activities are above the threshold, the company is excluded from the universe.
We also exclude companies in severe material breach of UN Global Compact Principles on human rights, labour standards, environmental protection and anti-bribery/corruption.
Exclusions are based on reliable sources gathered from reputable third-party research providers. Pictet AM retains full discretion over exclusions and always reserves the right to deviate from third party information on a case by case basis. We monitor the exposure to all activities that might be perceived as controversial by some investors. We use Sustainalytics as our external data provider and enhance it with company disclosures and our own research. |
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Resources, Affiliations & Corporate StrategiesPictet Asset Management has a dedicated ESG Team which leads and co-ordinates implementation of our responsible investment policy, including ESG integration in investment processes, ownership practices, risk management and reporting tools. The ESG Team reports directly to Sébastien Eisinger, Managing Partner Pictet Group, Co-CEO Pictet Asset Management and Head of Investments. Key responsibilities include: Investments
Active Ownership
Pictet Asset Management has been a signatory of the UNPRI since 2007. In addition, Pictet Asset Management actively participates in several investor initiatives aimed at sharing best practices between asset managers and owners and encouraging corporate disclosure on ESG issues. We are notably involved in the IIGCC (Institutional Investors Group on Climate Change), SSF (Swiss Sustainable Finance) and similar organisation in the UK, Germany and Spain.
Pictet Group and / or Pictet Asset Management supports and actively participates in international and national initiatives, organisations and partnerships including the below (which indicates Pictet’s involvement, year joined and key areas of focus) :
Source: Pictet Asset Management, [April 2023]
Other industry associations:
Furthermore, Pictet, together with Swiss Sustainable Finance, was leading an initiative to put pressure on index providers to remove controversial weapon manufacturers from mainstream indices. The initiative, launched in August 2018, secured the backing of 174 signatories controlling over USD 9.7 trillion and including international asset owners and managers (as of January 2020). This initiative has now been closed due to inclusion of controversial weapons exposure disclosures in draft RTS and EU Benchmarking regulation.
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Literature
Last amended: 25/01/24 10:45 |
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05/05/2024