Introducing Portfolio Explorer

1. There are no magic numbers or easy answers, just stories of high-quality companies that are well positioned to contribute to and benefit from sustainable development.

We launched our Asia Pacific sustainable development strategy in 2005. When investing in Asia Pacific and emerging markets it is clear that sustainable development is not just about a single issue like climate change, gender equity or poverty alleviation - it is about all of them because they are all interconnected.

This holistic view of sustainable development means that companies can contribute in many different ways to a better future for people and planet. To reflect this, the tool avoids attributing  scores to the companies we invest in and also avoids a focus on a handful of standardised indicators, which are more often about operational efficiency than company impact. Instead, the tool allows viewers to explore the stories of individual companies organised by the diverse contributions they make.

2. Written by our investment team, not third party researchers or external marketers

The company stories are backed by evidence and collected by our team using their years of experience in sustainable investing. We do not rely on third-party researchers to tell us what is sustainable. Instead, we do our own analysis and rigorously test it through company meetings, team discussions and specially commissioned research. We then relate each contribution back to credible frameworks like Project Drawdown to test our assumptions. 

3. Shows the world the same way we see it, focused on individual companies bottom-up, long term and on real solutions to difficult problems

We do not claim to have all the answers to the many difficult sustainable development challenges the world faces, nor do we believe that we need to. We believe that investing in high-quality companies run by people with integrity and a long-term view is the best way to invest money, enabling organisations to positively touch the lives of people around the world and driving the solutions to environmental challenges. These attributes are also the ones we believe will deliver good investment returns for clients. The tool groups companies around solutions, but ultimately is designed to allow users to explore companies in the way that best suits them.

4. Provides a balanced view of the companies we invest in

We know that no company is perfect (just like investors!). We encourage our companies to improve in ways that will increase their sustainable development contribution and make them a better investment over the long term. The tool provides a balanced view for the companies we invest in, highlighting the positive contributions, but also the risks and areas for future engagement.

Companies can contribute in many different ways to a better future for people and planet. We provide descriptions on how we believe each company is contributing towards sustainable development via the interactive Portfolio Explorer tool.

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

We only invests in companies that we believe are sustainable, which contribute to a social and/or environmental objective. The contribution of the our investments to the social and environmental objectives are assessed by reference to two framework indicators – our human development pillars and Project Drawdown climate change solutions.

We consider whether:

there is either a direct¹ or enabling² 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 sales or expected growth, or from the company’s strong culture e.g. diversity; and

the company recognises potential negative outcomes associated with its product or services and works towards minimising them (e.g. a company that sells affordable nutritious food products in plastic packaging, but is investigating alternative packaging).

Positive social outcomes

We will only invest in a company if we believe its activities lead to a positive social outcome.

We commit to investing in companies that we feel contribute to at least one of the following positive social outcomes which we call the human development pillars:

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.

Positive environmental outcomes

We assesses positive environmental outcomes by reference to the climate solutions developed by Project Drawdown³.  Project Drawdown is 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:

Food system – sustainable farming, food production and distribution of food-related products and services.

Energy – adoption of renewable energy and other clean energy and related technologies.

Circular economy and industries – improved efficiency, reduced waste e.g. recycling existing materials.

Human development – advancement of human rights and education that drive environmental conservation and sustainable use of resources.

Transport – efficient transport technologies and growth in fossil fuel-free transportation options.

Buildings – products and services which reduce the environmental footprint of the built environment, including energy efficiency, electrification, improved design, and use of alternative materials.

Water – less energy-intensive methods for treating, transporting and heating water.

Conservation and restoration – supporting deforestation-free and environmentally friendly supply chains.