What makes a fund suitable for the Impact pathway?
Our Impact funds have the following in common:
- A focused sustainability objective, which is as important as the fund’s financial target
- Reporting that covers a range of sustainability metrics
- Exclusions, designed to rule out activities where neither investment nor engagement stand to deliver a net positive impact
What does this mean in practice?
Exposure to companies forging a more just and sustainable future
The companies we invest in have a story to tell. Often, they are businesses with an opportunity – the opportunity to generate either a positive, or a reduced negative, impact. They might otherwise be businesses that are already providing scalable solutions to today’s social and environmental challenges. Importantly, we believe a company’s impact potential can lie in its products and services or, equally, its relationships with suppliers and the wider community.
From companies addressing social inequality, to those tackling climate change by producing more cost-effective wind turbines – or shifting their product suite to align with a low-carbon world – we invest and engage over the long-term to drive real, scalable change.
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A robust process for considering impact credentials
Funds in this pathway have a dual objective incorporating impact, as well as financial, metrics. Where a company’s activities touch upon material issues, investors can expect a clearly defined impact or engagement thesis.
SDG Engagement Equity
Engagement provides for a multitude of impact opportunities to be realised across a company’s value chain.
Impact that is tangible, measurable, meaningful
Intentionality is one of the key tenets of funds in this pathway – teams must demonstrate they have deliberately pursued positive, real-world impact alongside financial gains. As such, and in line with our classification of these as Article 8 or 9, investors can expect robust reporting that illustrates progress in concrete terms.