We use our responsible investment tier framework in the selection and monitoring of our investments with respect to environmental, social, and governance (ESG) factors.
Our responsible investment tier criteria
These are the basic expectations for any fund that we invest in.
We expect the firm to have an ESG/RI policy, or be a signatory of the PRI, or be a signatory of the FRC's UK Stewardship Code (or equivalent).
In addition, the manager should have access to material ESG risk data and any actively managed funds should not invest in companies involved in the manufacture of cluster munitions and anti-personnel mines.
Please note, the rules-based methodologies of passive funds may mean that some passive funds in this tier may have some exposure to companies involved in the manufacture of cluster munitions and anti-personnel mines.
The funds in tier 2 must meet the tier 1 criteria.
We undertake a rigorous investment due diligence process, applying both quantitative and qualitative analysis. The process focuses on the ‘4Ps’ (philosophy, process, people, and portfolio) to identify funds that are leaders in the integration and management of ESG factors.
Please note, both actively managed and passive funds in this tier do not invest in companies involved in the manufacture of cluster munitions and anti-personnel mines.
The funds in tier 3 must meet the tier 2 criteria.
We undertake a sustainable outcomes assessment to help us identify the funds that target sustainable outcomes.
The funds in tier 3 must also apply an exclusionary framework and align, where possible, to the unsustainable areas we exclude and avoid.