Under the bonnet of an impact portfolio

Written by Jayne Raven on 3rd Oct 2018

There is a current trend within the investment community of justifying how ethical or sustainable funds are. Too many funds are making statements claiming they are ethical or sustainable for marketing purposes, when in fact they are not, in what has been described as “Greenwashing”

At Pennine Wealth Solutions, a Good Egg mark company, the Positive Pennine range of portfolios undergo a rigorous investment process, which means we look under the bonnet of the funds within our portfolios and how they are working towards the United Nations 17 Sustainable Development Goals (SDG).

To demonstrate, here are three examples of holdings and how they invest in companies that are involved in activities to meet the UN Sustainable Development Goals.

  • Enabling Infrastructure (SDG 12 Responsible Consumption and Production and SDG 9 – Industry, Innovation and Infrastructure)

ASML (Liontrust Sustainable Future Global Growth)

ASML’s technology is essential in increasing the computing power of semiconductor chips while reducing the energy consumption.  As semiconductor content increases in a bewildering array of devices and cars become electrified, reducing energy is critical, and ASML is well placed to deliver this.

  • Natural Capital (SDG 6 – Clean Water & Sanitation)

Xylem (WHEB Sustainability)

Xylem’s innovative solutions help enable the sustainable use of water globally.   Its Smart water networks identify water infrastructure problems earlier and more efficiently. Improved wastewater management means less polluted rivers, lakes and streams; whilst billions of gallons of previously wasted water can be directed to those that need it.

  • Resource Efficiency (SDG 12 Responsible Consumption and Production)

Unilever Green Bond (Threadneedle UK Social Bond)

In 2014, Unilever – the owner of PG Tips tea, Walls ice cream, Persil washing powder and many other brands – issued a £250 million green bond.  The proceeds of this have been invested in eco-efficiency projects at selected factories including rainwater harvesting, LED lighting, solar water heating and heat recovery.

This is only a small sample of how Positive Pennine are striving to make a difference within the investment environment, whilst enabling investors to contribute to the UN Sustainable Development Goals.

Jayne Raven is marketing manager for Pennine Wealth Solutions, a Good Egg mark company

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