U Ethical’s investment process ensures that all investment decisions maintain our vision to improve the world through the power of purposeful investing, as well as promoting careful financial stewardship. This is achieved through the application of positive and negative screens, and engagement with companies – together with a focus on competitive economic returns and sustainability.
We initially integrate ESG analysis within our process through discussions with the issuer, looking at the company through an ESG lens, comparing it to peers, discussing any continuous improvement efforts they have in place relevant to ESG metrics. We then assess how this may improve their financial performance / standing.
Country exposure may raise material ESG risk. For example, a supranational bank could be supporting infrastructure projects that benefit communities, but due to corrupt governments within the countries in which these are built, there could be corruption in the tendering process.