Our Approach to Socially Responsible Investing

Whilst there is an argument that information captured in prices already includes current expectations about Environmental, Social and Governance related risks or opportunities, plus governments and authorities are trying to change behaviours directly with companies and consumers, this is a rapidly evolving consideration.

Our aim is to provide guidance in this area whether it be a bespoke solution if needed, or as we find many clients are looking for:

A balance between globally diversified portfolios with the potential for positive financial returns incorporating some positive objectives and influences.

Introduction to our Focused Socially Responsible Equity and Sustainability models

Our aim has been to try and follow the standard investment principles we believe in as much as possible, whilst looking at what investment options are available in the marketplace that support these principles, but have some focused positive objectives and influences.

At this point we have identified two approaches that we are comfortable recommending :

• Global Sustainable model - a globally diversified model portfolio, but with a clear objective to focus on sustainability issues, defined in this approach by prioritising greenhouse gas emissions with some company exclusions for other defined key issues. Example »
  
• Global Socially Responsible model - a globally diversified model portfolio but with a broader focus on environmental, social, governance, sustainability and socially responsible exclusions. Example »
  

We can of course build different model portfolios following the same principles to meet different investors risk levels.

Please see the following key documents to help understand each funds clear objectives in more detail and the demonstration of the influences their approaches are having.

Dimensional Approach to Sustainability Investing »
Dimensional Sustainability Funds Brochure »
Dimensional Sustainability Equity Reporting »
Dimensional Sustainability Fixed Income Reporting »
Dimensional 2022 Annual Stewardship Report »

Vanguard our approach to ESG »
Vanguard Exclusions Report for Developed all cap ex Index »
Vanguard Investment Stewardship semi annual report 2022 »

iShares Environment & Low Carbon Tilt Real Estate Index Fund »

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