Sustainable + funds with a Best-In-Class approach cannot invest in companies with a negative recommendation (corresponding to decile 8, 9 and 10), have a weight constraint on companies with neutral recommendation (corresponding to decile 4, 5, 6 and 7) and can be overweight on companies with positive recommendation (corresponding to decile 1, 2 and 3). This weight constraint has been put in place to guide these funds towards best-in-class companies.
Moreover, our full range of investment strategies now adopts a sustainable investment approach, involving the systematic integration of E, S and G considerations into investment processes. Our ESG integration process is guided by formal ESG Integration Guidelines, including KPIs ensuring our portfolios display better ESG characteristics, including targeting a higher weighted average ESG score and a lower carbon intensity than their benchmarks. These KPIs entail the overweight of holdings with a better than average ESG score and a lower carbon footprint.