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This includes information on the new filter options (under the header of the filter field they sit in) that we have added to Fund EcoMarket to reflect recent market developments.
An explanation of recent changes and list of new filters follow:
Fund EcoMarket improvements & additions.
As you may be aware, at the start of every year we update the filter options on Fund EcoMarket to help users deal with queries they may receive about newer or increasingly high profile issues and industry developments.In addition to new filter options this year we added a new ‘Processes’ field – so that fund managers can explain how they operate in more detail – helping our c2000 pm users to look under the bonnet!We also added a new section on our fund form asking fund managers for their (optional) Dialshifter statements – where they can set out how they aim to help ‘shift the dial’.NB
If you have built a fact findbased on our suggestions you may like to add some of the following to your form.
We have also updated the questions on our‘SRI Stylefinder’ fact find support tool, bringing in more specific questions differentiating between ‘Sustainability Tilt’ and ‘Sustainability Themed’ funds. (Please be aware if you are working from a saved version of this).
Be aware we are waiting for responses from most fund managers for these new questions. Any filter marked ‘New’ is likely to display incomplete results for the next month or two.
You will notice some of these refer to EU developments. These are now (yet?) directly applicable here. We have chosen a few we think would be particularly userful as points of reference – (and most likely to be promoted by those operating in both the UK and EU).
The new filter options we have just added (with the guidance we gave to RFP teams who kindly complete our forms) are below:
‘Policies, Issues and Themes’ filter
Environmental
Biodiversity policy
Mark this box if the fund has a written biodiversity policy or theme aimed at environmental protection
Waste management
Mark this box if the fund has a written policy or theme on waste management
Energy efficiency theme
Mark this box if the fund has an energy efficiency theme
Require net zero action plan from all/most companies
Mark this box if the fund requires all or almost all of the companies it invests in to have a ‘net zero action plan’
EU Sustainable Finance Taxonomy holdings 5-25% of assets
Please only tick this box if you have calculated the proportion of fund asset that meet the Taxonomy requirements and they total 5-25% of fund assets.
EU Sustainable Finance Taxonomy holdings >25% of assets
Please only tick this box if you have calculated the proportion of fund asset that meet the Taxonomy requirements and they total >25% of fund assets.
Social
Diversity policy (fund level)
Mark this box if the fund has a written diversity policy – aimed at selecting companies with high standards in this area (this should ideally cover a range of issues – gender, ethnicity, disability, beliefs etc.)
Labour standards policy
Mark this box if the fund has a written labour standards policy (aimed at directing investment towards companies with higher standards)
Fast fashion exclusion
Mark this box if the fund excludes companies involved in the ‘fast fashion’ sector
UN Global Compact linked exclusion policy
Mark this box if the fund uses the UNGC to inform where it can / cannot invest
Ethical
Civilian firearms production exclusion
Mark this box if the fund has a written civilian firearms exclusion policy
‘Approaches and Application’ filter
Approaches
Sustainability focus
Mark this box if the fund substantially focuses on sustainability issues
Mark this box if a core element of this fund is to encourage higher ESG standards through stewardship / engagement /voting activity
Encourage transition to low carbon (stewardship activity)
Mark this box if a core element of this fund is to encourage the transition to lower carbon activities through stewardship / engagement / voting activity
Encourage more sustainable business practices (stewardship activity)
Mark this box if a core element of this fund is to encourage higher sustainability standards as through stewardship / engagement / voting activity
Focus on ESG risk mitigation
Mark this box if a major focus of this fund is ESG related risk mitigation (i.e. not themes, exclusions etc.)
Strategy allows selection criteria to be altered in adverse market conditions
Please select this filter if your fund has provisions in place that allows it to alter/soften investment selection criteria in adverse market conditions
Impact
Report against sustainability objectives
Mark this box if this fund publicly reports performance against specific named sustainability objectives
Policies in practice
Intended for vegetarians and vegans
Mark this box if the fund is specifically designed to be appropriate for vegetarians and vegans
Fund features
Passive / index driven strategy [nb reworded]
(reworded from last year) Mark this box if use of an index directs where this fund can invest
Portfolio SRI / ESG options available (DFMs)
For DFM’s & portfolio providers only: Mark this box if you offer an SRI / ESG portfolio option
Multiple SRI / ESG portfolio options available
For DFM’s & portfolio providers only: Mark this box if you offer multiple SRI / ESG portfolio options
Bespoke SRI/ ESG portfolios available (DFMs)
For DFM’s & portfolio providers only: Mark this box if you offer bespoke SRI / ESG portfolio options
Intended for investors with an interest in sustainability / ESG / ethical issues
Mark this box if this fund is designed to meet the needs of retail investors with an interest in sustainability, ESG and or ethical issue
SFDR Article 6 fund / product
If known – Mark this box if the fund is classified under Articles 6 of the EU’s SFDR (Sustainable Finance Disclosure Requirements)
SFDR Article 8 fund / product
If known – Mark this box if the fund is classified under Article 8 of the EU’s SFDR
SFDR Article 9 fund / product
If known – Mark this box if the fund is classified under Article 9 of the EU’s SFDR
‘Responsible Ownership’ filter
Resources
ESG specialists on all investment desks
Mark this box if your organisation has one or more ESG/sustainability experts on all investment desks (all asset types)
Stewardship and Responsible Ownership
Company wide ‘Net Zero’ Commitment
Mark this box if your organisation has a company wide ‘net zero commitment’
Working towards a ‘Net Zero’ commitment
Mark this box if your organisation is working towards a companywide ‘net zero commitment’
Carbon transition plan published
Mark this box if your organisation has a companywide carbon transition plan
‘Forward Looking Climate Metrics’ published
Mark this box if you have published ‘forward looking climate metrics’ e.g. implied temperature rise applying to your assets under management
PRI A+ rated
Mark this box if your organisation has an A+ PRI rating
Affiliations and Collaboration
UN Net Zero Asset Owners Alliance member
Mark this box if your organisation is a member of the UN Net Zero Asset Owners Alliance
Other company features
Inhouse diversity improvement programme
Mark this box if your organisation has an in house (companywide) diversity improvement programme
Here is the link to our most recent newsletter – published yesterday.