EdenTree evolves its Responsible and Sustainable Screening Process further
EdenTree, we are alive to the changing attitudes and priorities of our client base in respect to ESG issues. As responsible stewards of our clients’ capital, our aim is always to listen and respond to these changes, building on our strong legacy of leadership in responsible and sustainable investment.
So far this year a number of different areas within our responsible and sustainable screening process have evolved, adding additional requirements to the way in which we identify whether a company is suitable for investments.
A new exclusion, fossil exploration & production, was added to our Ethics/ Values screen from 1 January 2021. Although the avoidance of oil & gas as well as coal extraction was previously captured implicitly by our ESG/ Responsibility screen, we felt that the urgent focus on climate change mandated a fresh, more explicit approach.
We also evolved environmental management under our ESG/ Responsibility screen to environment & climate change. This brings firmly into focus the importance of climate change as part of our ESG risk process, and raises its profile alongside other key environmental issues such as waste, pollution or biodiversity.
High interest lending became the second addition to our Ethics/ Values screen on the 1st of May 2021,recognising that punitive rates of interest may materially conflict with the aims and objectives of our responsible and sustainable clients. Companies caught by this new screen include sub-prime providers of finance in the door step lending, pay day loan or pawn broking segments where typical APRs are above 100%.
The full details of these changes and the criteria themselves can be found on the Edentree website under a more detailed announcement.