Pendal Ethical Share Fund

Product Name

Pendal Ethical Share Fund

Issuer

Pendal Group

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale, Institutional

Certified Since

2005

Asset Classes

Australian only equities

Markets

Australia

Investment Approaches

Negative Screening, Positive Screening

It Includes:

  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 10 Renewable energy and climate change solutions
  • Riaa icons 15 Social and sustainable infrastructure
  • Tree green background Sustainable land and agricultural management
  • Riaa icons 13 Sustainable transport
  • Riaa icons 31 Sustainable water

It fully excludes:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

Overview

The following text contains further information on the various negative and positive screens that we use when selecting, retaining or realising investments in the Fund and should be read in conjunction with the PDS. The positive and negative screening process conducted for the Fund is described below. Negative screening means that we exclude companies which do not meet our criteria as set out below. Negative screens are used to exclude companies as follows: • Uranium: companies which directly mine uranium for the purpose of weapons manufacture • Alcohol and tobacco: producers of these products • Gaming: manufacturers and providers of gaming facilities • Weapons: manufacturers of weapons and armaments • Pornography: manufacturers and distributors of pornography are excluded if revenues from manufacture or distribution of pornography represent greater than 10% of revenues • Environment: companies that have committed significant or recurrent breaches of environmental regulation • Workplace and business ethics: companies that have committed significant or recurrent breaches of workplace health and safety, anti-discrimination, equal opportunity, trade practices, or industrial relations legislation Positive screening means that we actively seek investments in industries and companies assessed as demonstrating and/or offering leading environmental and social practices, products or services. Leading Industries Industries offering products and services that provide a direct benefit to social and/or environmental outcomes such as: • Environmental management or remediation • Environmental technologies • Energy efficiency and renewable energy • Low-impact products or products that reduce ecological footprint • Sustainable buildings and property development • Sustainable land use and food production • Improved health and community well-being We look for any company with ‘significant involvement’ in these industries. Leading companies This includes companies we deem to demonstrate leading environmental and social practices. In assessing this we have regard to strategy, policy, management and performance in areas such as: • Environmental management including for example, climate change, greenhouse gas emissions, energy and water use • Business ethics and conduct, including stakeholder relations • Occupational health and safety management and performance • Human capital management, including workplace relations, equal opportunity, consultation and participation in the workplace and employee conditions and benefits The Fund’s compliance with its investment guidelines is reviewed regularly (usually monthly, but this timeframe is not fixed). If our review process identifies that an investment ceases to comply with the investment guidelines for the Fund, the investment will usually be sold as soon as is reasonably practicable, having regard to the interests of investors (but this may vary on a case by case basis).


Description


Investing in this fund provides exposure to companies assessed as demonstrating and or/offering leading environmental and social practices, products and services, whilst avoiding companies that do not meet the Fund’s ethical guidelines.

Negative screening means that we exclude companies which do not meet our criteria as set out below.
 
Negative screens are used to exclude companies (0% materiality threshold) as follows: 
  • Uranium: companies which directly mine uranium for the purpose of weapons manufacture
  • Alcohol and tobacco: producers of these products
  • Gaming: manufacturers and providers of gaming facilities 
  • Weapons: manufacturers of weapons and armaments
  • Pornography: manufacturers and distributors of pornography (if revenues from manufacture or distribution represent greater than 10% of revenues)
We also exclude:
• Environment: companies that have committed significant or recurrent breaches of environmental regulation 
• Workplace and business ethics: companies that have committed significant or recurrent breaches of workplace health and safety, anti-discrimination, equal opportunity, trade practices, or industrial relations legislation 

Positive screening means that we actively seek investments in industries and companies assessed as demonstrating and/or offering leading environmental and social practices, products or services.

Leading Industries
Industries offering products and services that provide a direct benefit to social and/or environmental outcomes such as: 
  • Environmental management or remediation
  • Environmental technologies
  • Energy efficiency and renewable energy
  • Low-impact products or products that reduce ecological footprint
  • Sustainable buildings and property development
  • Sustainable land use and food production
  • Improved health and community wellbeing

Other products certified by the Responsible Investment Association Australasia (RIAA)

Pendal Sustainable Australian Fixed Interest Fund

Pendal Sustainable International Fixed Interest Fund

Pendal Sustainable International Share Fund

Pendal Sustainable Future Australian Share Portfolio

Pendal Sustainable Australian Share Fund

Pendal Sustainable Balanced Fund

Pendal Sustainable Conservative Fund

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