This strategy was launched in 2019 and follows the same approach as the Global Strategy that was launched in 2006. Much of the team is the same and it is the team approach that is important to how this operates. They have red lines in terms of avoiding companies / countries which violate the UN global compact rules, aren’t committed to the 2-degree world and certain sectors like tobacco.
A great deal of work is done around the sovereign side. There are certain states which don’t pass their tests or require further work. This means the sustainable strategy has no exposure to Brazil, Russia, Qatar, and China in terms of government bonds.
In terms of companies, the test is whether there is government involvement. If there is, then they will not hold it if the state is one that does not pass their tests. Even if there is no involvement then they may not hold it if they are uncomfortable with the country…..read more