The portfolio does not have any one single investment style. Instead, we select companies that have the best combination of fundamental attributes and ESG behaviours. We avoid companies that have material exposure to fossil fuels and a high carbon intensity, and favour firms with attractive financial characteristics and which support the transition to a low-carbon economy and focus on minimising further climate change.
Stewardship is an essential part of our investment approach. In managing the portfolio, we seek constructive and positive dialogues with each company’s board and management team, encouraging them to mitigate any negative impacts resulting from existing activities and to adopt practices, initiatives and strategies that deliver tangible and positive outcomes. We believe this should benefit society and the planet, the companies themselves, their employees and the local communities in which they operate, and investors.