ESG/Sustainable fund reporting

ESG/Sustainable fund reporting

These Funds seek to achieve long-term capital appreciation by investing in companies which both contribute to, and benefit from, sustainable development, achieving positive social and environmental sustainable outcomes.

SFDR disclosures for Article 9 funds

Sustainable investment objective

This information relates to the Stewart Investors Asia Pacific Leaders Sustainability Fund, Stewart Investors Asia Pacific Sustainability Fund, Stewart Investors Indian Subcontinent Sustainability FundStewart Investors European Sustainability Fund, Stewart Investors Global Emerging Markets Leaders Fund, Stewart Investors Global Emerging Markets Sustainability Fund, Stewart Investors Worldwide Leaders Sustainability Fund and Stewart Investors Worldwide Sustainability Fund (the “Funds”)

The Funds listed above and shown below pursue responsible or sustainable investment strategies and/or pursue ESG/sustainability characteristics, themes or outcomes. For these Funds, we aim to make information readily available on how well the Fund is meeting its stated objectives on an ongoing basis to enable investors to monitor whether their expectations are being met. The regulatory environment for these types of funds is rapidly developing and we expect our disclosures to develop over time in light of the changing regulatory landscape.

The sustainable investment objective of the strategies is to invest in companies which both contribute to, and benefit from, sustainable development, achieving positive social and environmental sustainable outcomes. All investee companies contribute to improving human development, while many also contribute to positive environmental outcomes.

We assess positive social outcomes by reference to the below human development pillars. We have developed these human development pillars, by reference to, amongst other things, the UN Human Development Index.

We assess positive environmental outcomes by reference to the climate solutions developed by Project Drawdown*, a non-profit organisation that has mapped, measured and modelled over 90 different climate solutions that it believes will contribute to reaching ‘drawdown’, i.e. the future point in time when levels of greenhouse gases in the atmosphere stop climbing and start to steadily decline.

Positive social outcomes

We assess positive social outcomes by reference to the below human development pillars. We developed these human development pillars, by reference to, amongst other things, the UN Human Development Index.

  • Health and well-being – improved access to and affordability of nutrition, healthcare and hygiene, water and sanitation
  • Physical infrastructure – improved access to and affordability of energy and housing
  • Economic welfare – safe employment offering a living wage and opportunities for advancement, access to finance and improved standards of living
  • Opportunity and empowerment – improved access to and affordability of education and information technology

Visit our Portfolio Explorer tool to find out more about the pillars and the diverse contributions companies are making to human development.

Positive environmental outcomes

We assess positive environmental outcomes by reference to the climate solutions developed by Project Drawdown*, a non-profit organisation that has mapped, measured and modelled over 90 different climate solutions that it believes will contribute to reaching ‘drawdown’, i.e. the future point in time when levels of greenhouse gases in the atmosphere stop climbing and start to steadily decline.

Below is a list of climate solutions together with corresponding examples we believe lead to positive environmental outcomes:

  1. Food system - Sustainable farming, food production and distribution of food-related products and services
  2. Energy - adoption of renewable energy and other clean energy and related technologies
  3. Circular economy and industries - improved efficiency, reduced waste, and new business models for closing resource loops in linear value chains and production processes
  4. Human development - Advancement of human rights and education that drive environmental conservation and sustainable use of resources
  5. Transport - efficient transport technologies and growth in fossil fuel free transportation options
  6. Buildings - products and services which reduce the environmental footprint of the built environment, including energy efficiency, electrification, improved design, and use of alternative materials
  7. Water - less energy intensive methods for treating, transporting and heating water
  8. Conservation and restoration - supporting deforestation free and environmentally regenerative supply chains, operations and end of life impacts

Not every company will necessarily map to an environmental solution.

Visit our Portfolio Explorer tool to find out more about the solutions and the diverse contributions companies are making to climate change.

Company contribution assessment:

In assessing whether a company ‘contributes to, and benefits from’ sustainable development, we will consider whether:

  • there is either a direct or enabling** link between the activities of the company and the achievement of a positive social or environmental outcome;
  • the company can benefit from any contribution to positive social or environmental outcomes through revenue or growth drivers inherent in the company’s business model, strategic initiatives that are backed by research and development or capital expenditure, or from the company’s strong culture e.g. for equity and diversity; and
  • the company recognises potential negative social or environmental outcomes associated with its product or services and works towards minimising such outcomes (e.g., a company that sells affordable nutritious food products in plastic packaging, but is investigating alternative packaging options).

How did the sustainability indicators perform?

Companies can contribute in many different ways to a better future for people and planet. To align with their bottom-up investment approach, we provides descriptions on our Portfolio Explorer tool, on how we believe each company is contributing towards sustainable development. 

Users can explore the stories of individual companies organised by the diverse contributions they make including towards human development pillars and climate solutions. The holdings information is updated on a quarterly basis.

Fund level reporting to 31 Dec 2023

The SFDR Level 2 reporting template for each of our Article 9 funds is available in a standalone document and also within the latest First Sentier Investors Global Umbrella Fund plc Annual Report. The social and environmental outcomes for the Funds are below:

Stewart Investors Asia Pacific Sustainability Fund

  • As at 31 December 2023, the Fund held 65 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 178 contributions to the pillars.
  • 40 companies (62%) were contributing to climate change solutions. These companies were contributing to 39 different solutions and, in total, were making 129 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors Asia Pacific Leaders Sustainability Fund

  • As at 31 December 2023, the Fund held 41 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 118 contributions to the pillars.
  • 26 companies (63%) were contributing to climate change solutions. These companies were contributing to 31 different solutions and, in total, were making 91 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors European Sustainability Fund

  • As at 31 December 2023, the Fund held 43 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 110 contributions to the pillars.
  • 35 companies (81%) were contributing to climate change solutions. These companies were contributing to 43 different solutions and, in total, were making 117 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors Global Emerging Markets Sustainability Fund

  • As at 31 December 2023, the Fund held 57 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 167 contributions to the pillars.
  • 36 companies (63%) were contributing to climate change solutions. These companies were contributing to 33 different solutions and, in total, were making 111 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors Global Emerging Markets Leaders Fund

  • As at 31 December 2023, the Fund held 47 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 133 contributions to the pillars.
  • 30 companies (64%) were contributing to climate change solutions. These companies were contributing to 31 different solutions and, in total, were making 96 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors Indian Subcontinent Sustainability Fund

  • As at 31 December 2023, the Fund held 37 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 107 contributions to the pillars.
  • 22 companies (59%) were contributing to climate change solutions. These companies were contributing to 38 different solutions and, in total, were making 78 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors Worldwide Leaders Sustainability Fund

  • As at 31 December 2023, the Fund held 38 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 98 contributions to the pillars.
  • 30 companies (79%) were contributing to climate change solutions. These companies were contributing to 36 different solutions and, in total, were making 94 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Stewart Investors Worldwide Sustainability Fund

  • As at 31 December 2023, the Fund held 50 companies.
  • All companies (100%) were contributing to at least one human development pillar and, in total, were making 119 contributions to the pillars.
  • 36 companies (72%) were contributing to climate change solutions. These companies were contributing to 41 different solutions and, in total, were making 114 contributions to the solutions.

The social and environmental outcomes for the Fund are provided in the charts.

Source for analysis and mapping: Stewart Investors investment team, company data and © 2014–2024 Project Drawdown (drawdown.org) as at 31 December 2023.

Contributions are either direct (directly attributable to products, services or practices provided by that company) or enabling (supported or made possible by products or technologies provided by that company). More information is available on the Portfolio Explorer.

Glossary

Sustainable investment means an investment in an economic activity that contributes to an environmental or social objective, provided that the investment does not significantly harm any environmental or social objective and that the investee companies follow good governance practices.

Sustainability indicators measure how the environmental or social characteristics promoted by the financial product are attained.

SFDR disclosures for Article 9

Sustainable investment objective

For full SFDR disclosures, please see the Pacific Assets Trust site.

* Any reference to Project Drawdown is to describe the publicly available materials utilised by Stewart Investors in formulating its sustainability analysis. It is not intended to be, and should not be, read as constituting or implying that Project Drawdown has reviewed or otherwise endorsed the Stewart Investors sustainability assessment framework.

**A direct link would arise where the goods an entity produces or the services it provides are the primary means through which the positive social or environmental outcome can be achieved (e.g. solar panel manufacturers or installers).

An enabling link would arise if the goods a company produces or services it provides enable other companies to contribute towards the achievement of the positive social or environmental outcome (e.g. manufacturers of critical components that are used as inputs in the manufacture of solar panels).