Green funds

Examples of green investment themes:

• Renewable energy: fund invests in renewable energy, including production, transmission, appliances, and products.
• Environmental and ecological: fund invests in diverse environmental/green sectors, such as energy efficiency, climate change adaptation, pollution prevention and control, sustainable food and agriculture, sustainable fishery, biodiversity conservation, clean transportation, circular economy adapted products and processes, and green buildings.
• Carbon: fund invests in carbon credits used to offset emissions by financing carbon reduction projects.
• Forestry: fund invests in environmentally-sustainable forestry, including afforestation and reforestation, plantation forestry and sustainable forest management with internationally recognised certificates, and preservation or restauration of natural landscapes.
• Water: investments in water-related sectors, such as water supply and treatment, water technology, sustainable water and wastewater management, environmental services, mineral water, and aquatic biodiversity conservation.

In addition to focusing on specific environmental criteria, the investment selection may also consider the following investment strategies:

• Norms-based screening – approach based upon screening in accordance with recognised frameworks, such the UN Global Compact or Human Rights
• Multiple exclusions strategy – approach that excludes multiple investments or classes of investments from the investible universe
• Best-in-class – approach where leading or best performing investments within a universe, category or class are selected or weighted based on ESG criteria
• ESG integration – approach which analyses the ESG performance of companies and considers this in the investment process
• Engagement – active ownership through engagement with companies on ESG matters
• Voting – active ownership through voting on ESG matters
• ESG ethical screening – approach based on a strategy dedicated to screening in accordance with specific frameworks or values such as ESG shariah or faith-based screening
• Investing for impact – approach where specific impact objectives are targeted, measured and reported