Pendal Sustainable Future Australian Share Portfolio

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:

  • Riaa icons 14 Education
  • 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 33 Fossil fuels
  • Riaa icons 42 Gambling
  • Riaa icons 52 Human rights abuses
  • Riaa icons 99 Pornography
  • Riaa icons 35 Tobacco

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.

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 Australian Share Fund

Pendal Sustainable Balanced Fund

Pendal Sustainable Conservative Fund

Pendal Ethical Share Fund

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