Assessing the impact

CT Sustainable Universal MAP Range

A range of factors have driven the rapid growth in sustainability-orientated investing.  Greater awareness of issues like climate change mean that individuals are increasingly keen to align their investments with broader beliefs and consumer behaviours.  At the same time, regulatory shifts mean that Environmental, Social and Governance (ESG) related factors and preferences need to be considered as part of the financial planning process. 

A range to meet the challenge

Our CT Sustainable Universal MAP Range was designed to meet these demands – a suite of risk targeted actively managed multi-asset funds
with a sustainable remit.  The funds are underpinned by our Avoid, Invest, Improve philosophy. That means we avoid companies in areas like fossil fuels, tobacco, and weapons. We proactively select companies making a positive contribution to society and the environment and with favourable ESG credentials.  At the same time, we engage with businesses to drive positive change in the management of ESG issues.

Sustainability leaders – global challenges create opportunities for investors.  Schneider Electric, for example, is a leader in energy management driving the transition to a more efficient world.  Read about more of our portfolio holdings in our impact report.

Assessing our impact

A key element of the transition towards a more responsible approach is a greater understanding of the real-world impacts of our investment decisions.  Our annual impact report aims to provide investors with these insights.  They analyse the social and environmental impacts of the funds and detail our active ownership activities (engagement and voting).

Roadmap to a sustainable world

We also map the portfolios against the UN Sustainable Development Goals – a widely adopted framework of 17 goals designed to transition the world to a more sustainable footing by 2020.  They cover issues like poverty, health, and climate change.

Impact metrics – crunching the numbers

We assess how the portfolios in the range rank relative to a range of sustainability-orientated metrics.  These include the likes of carbon, water, and waste intensity as well as gender equality and other measures.  We use a composite benchmark for comparison meaning that investors can see how the portfolios rank across the metrics.  Our ambition is that the funds rank better than their benchmarks from an ESG perspective and where they don’t it’s important that we’re able to understand why and work towards improving our scores over time.  

Inpact example – Waste intensity

Active ownership

We’re committed to being active owners – using our position as sizable shareholders to influence change within the companies we invest in through dialogue and voting.  We detail these stewardship activities in our Impact report.  In 2021 for example, we engaged with 113 companies held across the portfolios and achieved 78 milestones of positive change.  We discussed Tesco’s approach to the Living Wage with the business during 2021 and whilst it falls short in some areas were encouraged by moves the company is making towards labour standards in their supply chain.

For more information on our CT Sustainable Universal MAP Range visit our website. 

Key risks

Values may fall as well as rise and investors may not get back the full amount invested. Income from investments may fluctuate.

Screening out sectors or companies may result in less diversification and hence more volatility in investment values.

The income and capital due from bonds is dependent upon the issuing company’s ability to pay and any default will adversely affect the value of your investment.