Pendal Sustainable Australian Share Fund

Product Name

Pendal Sustainable Australian Share Fund

Issuer

Pendal Group

Category

Investment

Type

Fund or Trust

Target

Retail, Wholesale, Institutional

Certified Since

2017

Asset Classes

Australian only equities

Markets

Australia

Investment Approaches

Sustainability themed, Negative Screening

It Includes:

  • Riaa icons 32 Green property
  • Riaa icons 12 Healthcare and medical products
  • Riaa icons 10 Renewable energy and energy efficiency
  • 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 has some level of screening for:

  • Riaa icons 41 Alcohol
  • Riaa icons 36 Armaments
  • Riaa icons 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 38 Labour rights violations
  • Riaa icons 34 Logging
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

It fully excludes:

  • Riaa icons 56 Animal cruelty

Overview

The Pendal Sustainable Australian Share Fund is an actively managed portfolio of Australian shares. Investments are selected based on a range of sustainable, ethical and financial criteria.


Description


Investing in this fund provides exposure to companies companies that are more sustainable while avoiding those that cause significant social and/or environmental harm, as well as access to Pendal's active corporate engagement program.

Exclusionary screens
In managing the Fund, we avoid investing in companies which:

Fossil Fuels
  • directly extract or explore for fossil fuels (specifically, coal, oil and gas); or
  • derive 10% or more of their total revenue from fossil fuel-based power generation, or from fossil fuel refinement or distribution (coal, oil and gas)*; or 
  • derive 10% or more of their total revenue from the provision of supplies or services which relate specifically to fossil fuel extraction or exploration (coal, oil and gas)*
    • *Companies with a climate transition plan may be exempted from this exclusion, provided that they have in place a Paris Agreement aligned transition plan and produce climate-related financial disclosures annually, which in both cases we consider credible.
Uranium
  • derive 10% or more of their total revenue from directly mining uranium for the purpose of nuclear power generation
Logging
  • derive 10% or more of their total revenue from unsustainable forestry or forest products, including non-Forest Stewardship Council certified forest products 
    or non-Roundtable on Sustainable Palm Oil certified palm oil production
Gambling
  • directly manufacture, own or operate gambling facilities, gaming services or other forms of wagering; or 
  • derive 10% or more of their total revenue from the indirect provision of gambling (for example, through telecommunications platforms)
Pornography
  • produce pornography; or
  • derive 10% or more of their total revenue from the distribution or retailing of pornography
Weapons
  • manufacture or distribute controversial weapons (such as cluster munitions, landmines, biological or chemical weapons, nuclear weapons, blinding laser 
    weapons, incendiary weapons, and/or non-detectable fragments); or
  • manufacture non-controversial weapons or armaments (including civilian firearms or military equipment); or 
  • derive 10% or more of their total revenue from the distribution or retailing of non-controversial weapons or armaments (including civilian firearms or 
    military equipment)
Alcohol
  • produce alcoholic beverages; or
  • derive 10% or more of their total revenue from the distribution or retailing of alcoholic beverages
Tobacco
  • produce tobacco (including e-cigarettes and inhalers); or
  • derive 10% or more of their total revenue from the distribution of tobacco (including e-cigarettes and inhalers) or supply of goods or services specifically related to the tobacco industry (for example, packaging or promotion)
Animal cruelty
  • directly undertake animal testing for cosmetic products; or
  • directly undertake live animal export
Predatory lending practices 
  • directly provide products or services with lending practices that are unfair or deceptive to ordinary borrowers, including small amount short term loans at higher than commercial rates of interest (for example, payday loans, pawn loans or the use of aggressive sales tactics)
Breaches/ Misconduct 
  • we consider to have been found to have significant breaches of social or environmental norms or regulations, or are subject to serious and substantiated allegations of unethical conduct, which we consider have not been remedied or adequately addressed

Sustainability framework
Our sustainability assessment framework considers a company’s characteristics, including: 
  • The extent to which its products or services are beneficial to the environment and/or society; 
  • The manner in which it conducts its business and employs leading sustainability practices; and 
  • Its management of its environmental, social and governance (ESG) risks. 
 Examples of the sustainable industries offering beneficial products and sustainable leaders engaging in beneficial activities sought by the Fund include: 
  • Sustainable Industries
    • Sustainable buildings and cities
    • Improving health outcomes and community well-being
    • Environmental testing and remediation
    • Clean tech development and supply chain
    • Recycling & waste management 
  • Sustainable Leaders 
    • Supply chain & human rights 
    • Focus on business conduct and ethics 
    • Diversity promotion, re-investing in people and community 
    • Strong corporate governance 
    • Managing climate change 

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

Pendal Global Select Fund

Pendal Horizon Fund (formerly Ethical Share Fund)

Pendal Multi-Asset Target Return Fund

Pendal Sustainable Australian Fixed Interest Fund

Pendal Sustainable Balanced Fund

Pendal Sustainable Conservative Fund

Pendal Sustainable Future Australian Share Portfolio

Pendal Sustainable International Fixed Interest Fund

Pendal Sustainable International Share Fund

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