Responsible Investing

ESG Integration

We integrate ESG factors into investment decisions.

ESG is the management of environmental, social, and governance (ESG) threats and opportunities. Generally, these threats and opportunities are related to operational practices such as emissions reduction, community management, employee safety and corporate governance.

We use a materiality approach to analyse the balance of ESG factors for a particular company and determine the best path forward. For example, further research, engagement, financial modelling or in portfolio construction. When completing this assessment, we include issues across different time horizons and those that potentially create impact at a systemic, industry and company level.

More information on our approach to ESG can be found in our ESG Policy and ESG Integration fact sheet.

Stewardship and active engagement

We are active managers and focus on using our influence to encourage better ESG outcomes and reduce risk.

As investors, we have the ability to influence the behaviour and actions of companies we own. We take this responsibility very seriously and are committed, where possible, to use this influence to reduce environmental, social and governance risks over the short, medium and longer-term in order to maximise shareholder value for our clients.

Engagement

We aim to actively engage with companies in our investment portfolio and those under consideration for investment. We firmly believe that this approach provides us with a detailed understanding of ESG risks and opportunities, informs our fundamental analysis, and allows us to communicate our expectations to company management. We publish all ESG engagements in our annual ESG and Sustainability Report.

Proxy voting

Alphinity takes its ownership responsibilities seriously and believe the right to vote as a proxy for our investors is a valuable asset. We disclose our proxy voting activities.

More information on our approach to stewardship is in our Stewardship Policy.

Sustainable strategies

We have two dedicated sustainability strategies structured around the United Nations Sustainable Development Goals.

These strategies aim to invest in companies that we believe have a net positive alignment with the United Nations Sustainable Development Goals (SDGs), exceed our minimum ESG criteria, and which are also identified as undervalued, quality companies within an earnings upgrade cycle

For more information on our approach see our sustainable Fund Charters (Alphinity Global Sustainable Equity and Alphinity Sustainable Share) and Sustainable Investing Fact Sheet. We publish the SDG alignment of companies in our fund in our annual ESG and Sustainability Report.

Transparency

We disclose proxy activities, portfolio holdings and have a public ESG Policy and Stewardship Policy.

Alphinity has been a signatory to the Principles of Responsible Investing since 2011. Our Public Transparency Report is here.

We also prepare an annual ESG and Sustainability Report which highlights key ESG and sustainability outcomes and achievements across all Alphinity funds. This report includes annual performance outcomes for:

• Stewardship activities (engagement and proxy voting)
• Financed emissions
• SDG alignment for our sustainable funds

Our most recent report is here.

We also disclose proxy voting activities at the bottom of this page.