What is the EQ Sustainable World Strategy?
The strategy is built around three interconnected pillars, each targeting a different dimension of responsible investment:
- ESG Leaders:Investing in companies that demonstrably outperform their peers on environmental, social, and governance metrics. The underlying logic is straightforward: well-run companies are more resilient, face fewer regulatory or reputational shocks, and tend to deliver stronger long-term returns.
- Climate Focus:Targeting companies at the forefront of the energy transition, whether through climate solutions, low-carbon operations, or credible science-based pathways to net zero. The portfolioobjective is a lower carbon footprint than the benchmark, with full Science Based Targets initiative (SBTi) alignment by 2040.
- Impact Solutions:Backing specialist fund managers whose investee companies directly contribute to the UN Sustainable Development Goals (SDGs), spanning healthcare, clean energy, financial inclusion, and natural capital.
By the numbers: How does the portfolio stack up?
On climate, the EQ Sustainable World Adventurous portfolio achieves 83% of holdings in high-alignment companies, those providing climate solutions or operating with a low-carbon footprint.
The portfolio carries a lower carbon footprint and a higher proportion of companies with science-based net-zero targets than its global equity benchmark.
On SDG alignment, the portfolio significantly outpaces both the global and UK equity benchmarks, with 66% of holdings classified as UN Goal-aligned. It also avoids harm more effectively, with just 1.2% of holdings classified as negative SDG contributors, compared to 11.5% and 32% for the respective benchmarks. Success stories: Environmental, social and governance leaders (ESG)
The report highlights portfolio holdings to demonstrate the sustainability outcomes targeted.
ASML, the Dutch semiconductor equipment giant, is targeting net-zero across its value chain by 2040 and zero operational waste to landfill. Its two-tier governance structure includes a dedicated ESG Committee that holds management accountable for progress on climate and social targets.
Mastercard has maintained carbon-neutral operations since 2020, powered by 100% renewable energy and high-quality carbon credits. Its Kids4Tech and Girls4Tech programmes have reached over 12 million students since 2014 building STEM skills and expanding
access to tech careers. 4
On the climate side, Carrefour is pursuing a 1.5°C-aligned pathway, with SBTi-validated targets across all three emissions scopes, a Forest Transparency Platform for deforestation-free sourcing, and engagement via Climate Action 100+. Meanwhile, Shopify kept total emissions to roughly 24,000 tonnes CO₂e in 2024 despite its revenue growth, helping decouple its commercial success from environmental footprint.
Engagement: Using influence, not just capital
Perhaps the most distinctive aspect of EQ’s approach is its active use of shareholder influence. This year, the firm conducted 49 engagements with relevant fund managers across six strategic themes: biodiversity risk, climate change in banks, ethical AI governance, climate physical risk, human rights in supply chains, and access to medicine.
EQ tracks progress through a four-milestone framework, from acknowledging questions, through discussions and commitments, to measurable improvements.
On banks and climate, EQ co-signed AGM statements at HSBC, Barclays, and Standard Chartered, pushing for loan book decarbonisation and credible net-zero transition plans. On responsible AI, EQ attended BT Group’s AGM in 2025 to raise questions on ethical safeguards, part of its involvement in the World Benchmarking Alliance’s Ethical AI Collective Impact Coalition since 2022.
AGM activism has also been deployed at AstraZeneca, GSK, Unilever, Kingfisher, and M&S.
Why this report matters
As Sophie Kennedy, Joint CEO and Head of Investment, puts it in the report’s introduction:
“Where we invest matters. How we use our influence matters too.”
For investors who want their portfolio to reflect their values without sacrificing returns, that dual mandate, financial performance and real-world outcomes is increasingly the standard against which investment managers will be judged.
» Download the EQ Sustainable World Report here.