Tilney has been successfully managing ethical and sustainable investment mandates for more than 15 years and has a dedicated central investment process for ethical and ESG screening that sits alongside our wider investment approach. We are a signatory to the United Nations Principles for Responsible Investing and, in 2021, won the Best ESG Investment Strategy Award at the City of London Wealth Management Awards.
At Tilney we manage a range of ethical and sustainable investment portfolios for clients. The majority of investments held in these portfolios are included for positive reasons. However, we also aim to avoid investing in companies with products or services that have negative environmental or social impacts.
The sustainability themes that we seek exposure in are:
When looking at ethical and sustainable investments, the sectors we aim to avoid are:
We believe in active ownership in this sector. ESG data are good indicators of underlying company health, but we believe that if used in isolation, this approach often fails to truly understand the DNA of a company and the intentions of its directors. It is also important to note that the accuracy and usefulness of company ESG data are still evolving.
We also believe that a best-in-class approach, where the best mining company or oil and gas company (based on ESG data) can be included in a portfolio, limits the possibility of achieving a real sustainable impact. For example, a tobacco company that is best in class because of good employment practices is still producing an unhealthy product for its customers and society. We try to avoid investing this way where possible.
We expect the managers of our underlying investments to be actively involved in shareholder engagement – both with us as investors and with the management teams of the companies that they invest in on our behalf. We believe that strong governance plays a key role in delivering good returns over the long term.
There are different ways to make ethical and sustainable investments with Tilney.
Speak to one of our ESG specialists
Your consultation will be at our cost and there is no obligation to work with us afterwards.