Environmental, social and governance assessments look at how responsibly any given business operates, and compares their practices to their industry peers.
The core of our Future Leaders Portfolios only select companies that are “ESG leaders” in each industry (top quartile). This means they show leadership in material categories, including:
Environmental: how a company impacts the natural environment, for example through water use or carbon emissions.
Social: how a company treats people, such as its employees, its customers, and its local community.
Governance: how the business polices itself, including the independence and expertise of its board.
This is achieved through adhering to MSCI SRI Filtered Paris-Aligned-Benchmark (PAB) methodology.
Contributing to solutions
We use the Sustainable Development Goals as a framework for seeking companies providing solutions to unmet social and environmental needs. Our portfolios are designed to overweight these companies.
Satellite funds of our Future Leaders Portfolios include sustainable thematic index tracking funds that positively select solutions companies, including:
- climate solutions
- health innovation
- digital security
- green bonds.