MAKING A POSITIVE ALLOCATION
ENGAGING WITH ISSUERS
CONDUCTING
IN-DEPTH RESEARCH
OPTIMISING THE UNIVERSE
Our portfolio managers and analysts conduct in-depth research and follow well-established investment processes to identify key risks and opportunities within their target markets.
• All companies materially involved in the following socially sensitive industries: adult entertainment, cannabis
production, controversial weapons, gambling and tobacco production
• All companies in breach of widely accepted global conventions such as the UN Global Compact principles
• All issuers with a worst-in-class Prime ESG rating or no Prime ESG rating, and all corporate issuers with a worst-in-class
Prime climate risk rating
The investment universe is adjusted by excluding:
• Impact bonds rated ‘red’ by Insight’s impact bond assessment
• All companies with worst-in-class carbon intensity (over 2,000 tonnes per US$1 million sales)
• All companies with over 5% of revenues from coal mining and power generation, or unconventional oil and gas
extraction, and utilities with over 30% coal in in their fuel mix – unless the exposure is achieved via a green bond
that passes Insight’s assessment framework for such issuance, or Insight believes the issuer has a clearly defined,
long-term plan to address its environmental impact
• Issuers that fail a Principal Adverse Impacts (PAI) screen – unless alternative mitigating action is deemed appropriate
We engage with entities to improve our understanding and to support our analysis and identification of risks that could be financially material. We may also engage to influence issuers on specific topics, and this could include encouraging them to improve their practices in defined areas, such as disclosures and governance.
We may also engage when specific sustainability thresholds are breached. For example, when a holding’s Prime ESG rating deteriorates to the worst possible rating, meaning it could be excluded from investment, Insight will consider whether to continue to hold the position and, if so, will seek to engage with the issuer with a view to influencing their future behaviour. If the issuer does not take reasonable steps to address the issue, a strategy’s portfolio managers will make reasonable endeavours to remove the position within 12 months.
Each strategy will endeavour to hold at least 10% of its portfolio in sustainable investments
OPTIMISING THE UNIVERSE
READ ABOUT THE RESPONSIBLE HORIZONS EXCLUSIONS: IN-DEPTH
• Issuers that fail a Principal Adverse Impacts (PAI) screen – unless alternative mitigating action is deemed appropriate
• Impact bonds rated ‘red’ by Insight’s impact bond assessment
• All companies with worst-in-class carbon intensity (over 2,000 tonnes per US$1 million sales)
• All companies with over 5% of revenues from coal mining and power generation, or unconventional oil and gas
extraction, and utilities with over 30% coal in in their fuel mix – unless the exposure is achieved via a green bond
that passes Insight’s assessment framework for such issuance, or Insight believes the issuer has a clearly defined,
long-term plan to address its environmental impact
• All companies materially involved in the following socially sensitive industries: adult entertainment, cannabis
production, controversial weapons, gambling and tobacco production
• All companies in breach of widely accepted global conventions such as the UN Global Compact principles
• All issuers with a worst-in-class Prime ESG rating or no Prime ESG rating, and all corporate issuers with a worst-in-class
Prime climate risk rating
The investment universe is adjusted by excluding:
READ ABOUT THE RESPONSIBLE HORIZONS EXCLUSIONS: IN-DEPTH