The AMP Capital Sustainable Share Fund uses a combined ESG screen and ESG integration approach to define its investible universe from its primary investment universe, the S&P/ASX200. The screening and best-in-class combination creates a bias (tilt) toward a portfolio of companies with stronger ESG practices, relative to the relevant benchmark and a lower carbon footprint exposure. It also reflects our clients' overall investment objectives and the mandate for the Fund, as clients invested in the Fund seek to limit their exposure to the screened sectors.
ESG screening applies if 10% or more of the company's earnings are derived from alcohol, tobacco, gambling, pornography, nuclear (including uranium mining) or armament activities. AMP Capital's ESG Research Team closely liaises with the portfolio manager to highlight which stocks (if any) are close to the 10% threshold, and these stocks are actively monitored during reporting season. For those companies involved in the production of tobacco or “controversial weapons”, or essential components of them, a zero revenue materiality test applies. Controversial weapons are considered to be land mines, cluster munitions, nuclear weapons and biological or chemical weapons. If the threshold is breached, the portfolio manager must divest the stock within 6 months
Regular reporting on these issues is provided to our clients in accordance with the Fund's mandate. Additional relevant information including ESG investment insights, corporate governance (proxy voting) statistics, and company engagement reports are publicly available via AMP Capital's website at www.ampcapital.com/esg.
Further information on AMP Capital's recently announced ethical decision-making framework are available at www.ampcapital.com.au/esg
*AMP Capital Funds Management Limited (AMP Capital) ABN 15159557721, AFSL 426455 is the responsible entity of the AMP Capital Sustainable Share Fund and issuer of the Product Disclosure Statement (PDS) for the Fund. To invest, investors will need to obtain the current PDS from AMP Capital before making a decision to acquire, continue to hold or dispose of units in the relevant Fund.