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Australian Ethical has launched the Climate Advocacy Fund, which will invest in S&P/ASX 200 firms with environmentally conscious practices.
The fund will aim to positively influence corporate behaviour while also outperforming the index.
The fund will pursue its aims through a passive portfolio construction method using ‘economic footprint’ weightings, which examine a company’s sales, cash flow, book value and dividends, according to Australian Ethical.
The approach “provides nominees and investors with a structured method to address inappropriate corporate activities,” the manager said.
The fund is targeting individuals who want to work towards improving the sustainability of corporate Australia, foundations with environmentally conscious aims, and superannuation funds and institutions that want to demonstrate their commitment to responsible investing.
Investments will encourage corporations to develop sustainable practices, lower waste and pollution, develop locally based ventures and alleviate poverty. The fund will discourage actions such as exploitation, discrimination, deceitful marketing, militarism, armament manufacture and the encouragement of financial over-commitment, Australian Ethical said.
