Sustainable investing
Engagement and sustainable investing - the Co-operative difference
Most fund providers analyse the financial performance of a company to choose whether or not they invest in them. We prefer to look beyond a companies financial prospects and consider how they do business too.
So, as well as looking at financial performance, our Fund Managers also carry out detailed analysis of a company's social, ethical, environmental and company management policies to give us a really complete picture of the companies we choose to invest in.
Our approach to...
Engagement
Many investors want to invest responsibly, but they also want a chance to invest in all areas of the market (sectors). So we apply our engagement policy to a range of our funds.
These funds offer investors access to all sectors and companies who we think have great long-term prospects and represent good investment opportunities.
These companies (which may include some who are involved in the production of tobacco, for example) have high standards of social and ethical practice and we engage with them to influence them to become even better.
Sustainable investing
We invest in companies who are addressing the social and environmental challenges which we’re facing as a result of the way the world is changing.
We’ve identified eight sustainable investment themes which we use to choose the companies we invest in. We think these are the industries of the future and expect them to represent great investment prospects.
Our sustainable funds don’t invest in companies that are involved in armaments, nuclear power generation, tobacco production or pornography, amongst other criteria.
Our sustainable investment themes – doing well by doing good
Sustainable theme |
Investment opportunity |
So we invest in some leading household names |
In which sustainable fund? |
|---|---|---|---|
| Healthcare | As populations age, we need better long-term healthcare and medicines | Johnson and Johnson – one of the world’s largest healthcare companies, specialising in pharmaceutical products which help people live long and active lives |  |
| Global Power Shortage | Oil may run out in about 40 years, so we’ll need alternative sources of energy | Scottish and Southern Energy – the largest developer of renewable energy in the UK and Europe |  |
| Urban Regeneration | Population growth and improved living standards mean we’re improving our towns and cities | Galliford Try – a leading UK housebuilder and construction company with a strong track record for delivering regeneration schemes | |
| Technology | With an industry which is moving so quickly, it’s likely the greatest enhancements are yet to come | eBay – an online marketplace with over 233 million worldwide customers | 
|
| Climate Change | One of the biggest threats to the planet means we’re all trying to reduce carbon emissions | Johnson Matthey – one of the largest manufacturers of catalytic converters | |
| Global Infrastructure | Better living standards around the world mean there’s a growing demand for services like energy, water and telecommunications in developing countries | Telefonica – one of the world’s largest telecommunications companies, providing services to 260 million people all over the world | |
| Sustainability | It’s generally accepted that companies need to do good, in order to do well | Unilever – manufacturer of leading household branded foods like Flora and Hellmans has high levels of corporate and social responsibility | |
| Emerging Consumer Markets | As countries like China, India and Brazil continue to modernise, their populations become bigger consumers | HSBC – One of the world’s biggest banks, who have over 8,500 offices in more than 80 counties | |
