The Sustainable Investment team reviews its screening criteria for the Sustainable Future funds in collaboration with its independent external advisory committee. Any change to the screening criteria is notified to clients and/or beneficiaries via the Insight section on our website (https://www.liontrust.co.uk/what-we-think/blogs?blogtype=Fund+manager+views). In July 2018, all funds managed by the team moved from a threshold of 10% of revenues from activities such as tobacco, gambling, intensive farming, weapon systems and nuclear to 5%. This was publicised on our website https://www.liontrust.co.uk/what-we-think/blogs/How-our-themes-are-evolving. The following extract from the aforementioned update in July summarises details of the screening revision:
As part of the review, we have tightened thresholds for the revenues that companies can derive from unsustainable and unethical activities and still be included in our portfolios. From July, companies have been able to generate 5% of revenues from activities such as tobacco, gambling, intensive farming, weapon systems and nuclear rather than the previous threshold of 10%. This has been done to better communicate the low exposure to these activities across the funds the team manages as well as to reflect increased interest from clients in more stringent criteria.
If the team needs to adjust its portfolios owing to a change to its screening criteria, it has six months from the change to sell the relevant securities.
The Sustainable Investment screening criteria are disclosed and publicly available on our website https://www.liontrust.co.uk/handlers/DownloadDocumentsHandler.lion?itemids=fc1bfe8f-110d-495b-8051-f448e9602d98