Environmental
How companies and industries manage their impact on the environment. This could include climate change, deforestation, pollution and waste management.
Social
How a company or industry manages its impact on society. This could include how they treat employees and suppliers, community engagement and health and safety.
Governance
Whether a company has good business practices. These could include the diversity of a company’s leadership team, executive pay or how they handle tax.
Why invest in an ESG fund
ESG stands for environmental, social and governance. They’re the criteria that can play a role in deciding what an ESG fund invests in.
ESG issues can impact a company’s financial performance. So funds that consider ESG issues could fit your investment goals. They could also suit your personal values.
How our ESG funds work
We have two types of ESG funds.
You can choose an index fund that excludes certain companies. These could be weapons or tobacco manufacturers, for example, or those that breach international principles.
Choose from global, developed or emerging markets, or combine them to suit your portfolio.
Or you can pick an actively managed fund that:
selects companies which meet certain ESG criteria
excludes companies involved in controversial business activities
Important things you need to know before you invest
The value of investments can fall and rise so you might not get back what you invested.
Everyone’s different. Make sure a fund’s objective fits your investment goals and personal values.
The companies included and not included in an ESG fund can differ between funds and change over time. For example, if a company is excluded from a fund for poor business practices, it may be included again when the issues are resolved.
Read our report about our approach to climate change
You'll learn how we’re approaching climate-related risks and opportunities, and how that compares to similar companies. The report is aligned to recommendations provided by the Task Force on Climate-related Financial Disclosures. The report covers:
Governance
Strategy
Risk management
Metrics and targets