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Informed by our Ethical Investment Philosophy, we seek out companies producing goods or providing services that appropriately manage their impact on society and the environment according to industry best-practice, industry standards and/or voluntary frameworks. We also screen out companies that do not meet our selection criteria.
U Ethical’s investment approach includes building an ethical/ESG profile that identifies risks and opportunities and is completed prior to any investment. It includes identifying and quantifying earnings/valuation impacts from material ESG issues or adjusting qualitative assessments that affect portfolio positioning. This ensures that targeted investments align with the Ethical Investment Policy, meet ESG criteria and identify areas for future engagement activity.
For Australian and international equities, we utilise the MSCI ESG Sustainable Impact Metrics (SIM) framework for an initial screen. This assesses product and services revenue alignment to the United Nations Sustainable Development Goals (UN SDGs) across six Environment Impact and seven Social Impact categories where relevant. All 17 UN SDGs are assessed in the net alignment analysis from Strongly Aligned to Strongly Misaligned. This is followed by an internal review. We also screen for companies that indirectly support these categories across the value chain and are aligned to longer-term investment themes.
Factors score based on historical quintiles or assessment from 1 (lowest) to 5 (highest).
U Ethical monitors ethical and ESG controversies to ensure that companies and issuers held in portfolios comply with the Ethical Investment Policy. A range of sources are used to monitored controversies. These include MSCI ESG Research alerts, ISS Governance research, broker reports, news publications, Bloomberg, industry bodies such as Responsible Investment Association Australasia, United Nations Principles of Responsible Investing, Certified Financial Analyst Institute and relationships with not-for-profit organisations such as the Uniting Church Australia, Justice and International Mission Cluster (JIM), Australasian Centre for Corporate Responsibility and ShareAction among others.
As an ethical and responsible investor, we hold the companies in which we invest to high standards.
As an ethical and responsible investor, we hold the companies in which we invest to high standards.
The information provided is general information only. Before acquiring a U Ethical product, you should read the disclosure document(s) for the product and seek independent advice to ensure it is appropriate for your particular objectives, financial situation and needs.
The disclosure documents are available from this website and contain details of the issuer of each product. U Ethical is a registered business name of Uniting Ethical Investors Limited ABN 46 102 469 821 AFSL 294147.
We acknowledge Aboriginal and Torres Strait Islander peoples as the traditional owners and original custodians of the lands and waters on which we all live and work. We pay our respects to Elders past and present.
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