Investment process

The Investment Manager employs an index style of investing, with securities screened for exclusion from the investment portfolio based upon detailed analysis of a company’s governance, social and environmental performance.

The Investment Manager will seek to exclude securities from the investment portfolio that lag peers in their responsible approach to governance, social and environmental risk or have a poor record of managing these risks.

Specific areas of analysis focused upon and incorporated into investment analysis include the following:

Governance

  • Corporate stewardship and accountability, including board diversity, independence and experience
  • Executive compensation
  • Ownership structure
  • Transparency, reliability and timeliness of financial disclosures

Social

  • Adherence to fundamental human rights
  • Labour practices, operational health and safety and supply chain labour standards
  • Privacy and data security
  • Level of involvement in activities which can have a harmful effect on humans
  • Opportunities in nutrition and health

Environmental

  • Environmental impact including analysis of an entity’s carbon emissions or carbon footprint
  • Environmental safeguards, remediation practices and product stewardship
  • Impact on natural capital including water efficiency, biodiversity and land use
  • Evaluation of toxic emissions, waste disposal practices or excess packaging material use

The Investment Manager is of the view that many of the above factors constitute ethical considerations. The Investment Manager may also take account of other aspects of governance, social and environmental matters.