While the mandate of our central ESG research team is to facilitate the integration of ESG factors across all portfolio management teams, there are more targeted ESG/impact portfolios as well, including the following examples:
- Global Impact, a global equity portfolio that invests in innovative companies whose core business addresses the world’s major social and environmental challenges with a measurable impact. This is determined by Wellington’s proprietary bottom-up global fundamental research This strategy is focused on 10 impact themes, which can be summarized into three categories: life essentials, human empowerment, and environment.
- Global Environment Opportunities: a global equity portfolio designed to help address carbon and sustainability under-investment in a targeted approach that delivers both environmental and financial returns on capital. This strategy is focused on four broad sustainability categories: low carbon electricity, energy efficiency, water and resource management, and low carbon transport.
- Advancement of Women: a global equity portfolio designed to invest in high-quality companies that value the inclusion and promotion of women. As part of the fundamental research process, the investment team focuses on female representation at the board and senior management levels as a proxy for companies’ commitment to diversity.
The firm also serves as the investment manager of various screened investment equity and fixed income portfolios, where we invest in, or exclude, certain types of companies based on pre-agreed ESG guidelines and criteria from the client.
Wellington Management sub-advises all three of Domini Impact Investment’s U.S. mutual fund offerings, two equity and one fixed income. The Domini Impact Bond Fund is a domestic, intermediate term fixed income fund, with a focus on community economic development. The objective is to create a fixed income vehicle aligned with the goals of seeking universal human dignity and environmental sustainability, while also achieving competitive financial returns. To that end, potential investments are screened by Domini for approval based on Domini’s own ESG criteria. While potential investments may be screened out due to negative factors, the approach also seeks to proactively invest in issuers that are having a positive impact on society.