Profile

Product Name	Pendal Sustainable Future Australian Share Portfolio
Issuer	Pendal Group
Category	Investment
Type	Separately Managed Account
Target	Retail, Wholesale, Institutional
Certified Since	2018

Asset Classes	Australian only equities
Markets	Australia
Investment Approaches	Best in class screening, Negative Screening
It Includes:	Education Green property Healthcare and medical products Renewable energy and climate change solutions Social and sustainable infrastructure Sustainable land and agricultural management Sustainable transport Sustainable water
It fully excludes:	Alcohol Armaments Fossil fuels Gambling Human rights abuses Pornography Tobacco
Broker	Responsible Returns
URL	https://www.responsiblereturns.com.au/investment-options/pendal-sustainable-future-australian-share-portfolio/profile

Overview

Pendal’s ethical and sustainability screening process considers a company’s material ESG exposures as it relates to both industry and company specific activities. Through Pendal’s industry screens, Pendal seeks companies in industries that provide a direct benefit to social and/or environmental outcomes. These screens also identify those industries that have unethical activities and create social harm. Company specific activities are assessed using a ‘Best of Sector’ approach that rates companies on their exposure and management of material ESG issues. Specifically Pendal seeks exposure to companies that rate above their peers while avoiding those whose assessment places them materially below sector expectations. The portfolio is constructed by incorporating Pendal’s best stock ideas within the context of Pendal’s fundamental research and sustainable assessment, with appropriate levels of diversification to increase the possibility of the portfolio’s return and risk targets being realised.

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.

Ethical practices
The portfolio will not invest in industries with direct business involvement (0% materiality) in the following activities:

– fossil fuel production and extraction such as coal, gas and oil

– the production of tobacco or alcohol

– manufacture or provision of gaming facilities

– manufacture of weapons or armaments, and
– manufacture or distribution of pornography.

Sustainability

In addition, Pendal’s sustainable assessment process considers the extent to which a company exhibits appropriate strategic recognition, board oversight, policies and systems to manage the company’s material ESG issues. Specifically, the assessment considers issues such as:

– Environmental considerations:
– management of environmental impacts through the implementation of best practice environmental techniques, technologies and product design

– environmental performance against a range of environmental indicators including, for example, greenhouse gas emissions, energy and water use and environmental incidents

– the capacity to consult key stakeholders in relation to activities that may have significant environmental impacts

– adoption of best practice with regards to management and disclosure of material risks and opportunities associated with climate change.

– Social practices and labour standards:

– equal opportunity, anti-discrimination and industrial relations policies and practices

– staff incentives, development and training

– employee benefits and entitlements

– human capital management performance against a range of indicators, such as voluntary turnover and gender diversity in senior management

– products or services that provide positive social impacts such as improved health & community well-being, disease prevention, and education

– management of contractors and suppliers, and

– workplace health and safety performance against indicators such as fatalities and lost time injury frequency rate.

– Corporate governance, business conduct and ethical considerations:

– codes of conduct and the extent of their integration into the company’s operations

– provision of regular and appropriate training

– whistleblower policies and procedures

– ethical conduct and performance of employees and officers – the extent to which companies are adopting principles in areas such as complying with the law, fair and open dealings and accepting responsibility for their actions

– product safety and consumer protection, and

– engagement practices with employees, shareholders, and key community stakeholders.

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