Invest in the sustainability leaders of tomorrow

Our carbon emissions problem

Human induced carbon emissions are the leading cause of global climate change. These include the burning of fossil fuels (such as coal) for heat and electricity, agriculture (livestock, rice patties and unhealthy soils), land use changes and some chemical and industrial processes (like cement production). On top of this, there are natural feedback loops that intensify this (releases from oceans, ice caps and forests).

It is up to all of us to stop the current trajectory. A concerted effort to tackle the climate crisis was finally embraced by 195 governments in the form of the Paris agreement in 2016. Yet, that isn’t enough. The private sector also needs to realise its responsibility in this global issue and the threat to business as normal.

Introducing the EQ future leaders portfolios

As a B Corp (committed to both shareholder and stakeholder success) wealth manager, we’ve highlighted our commitment to sustainability with the launch of a new range of low-cost responsible investment portfolios. Our aim is to provide a sustainable investment solution for everyone who wants to invest:

  • Low cost: These portfolios are built using efficient passive funds with low fund charges. All our portfolios are globally diversified, and regularly rebalanced to reflect our views on the potential returns from different markets.
  • Sustainable: The EQ Future Leaders portfolios select the most sustainable companies based on published Environmental, Social and Governance (‘ESG’) data.
  • Low carbon: All this means that Future Leaders portfolios have a lower carbon footprint than market benchmarks. Based on our scenario analysis, they are compatible with limiting global warming to 1.5 degrees.
  • Tailored to you: available for ISAs, SIPPs and GIAs.

Sustainability credentials

Passive investing lends itself well to a best-in-class approach and can also incorporate negative screening. With this in mind, we have designed the EQ Future Leaders Portfolios around the Impact Management Project’s ABC framework:

  • Avoiding harm: We use passive funds that screen out the most harmful sectors:
  • No tobacco
  • No armaments
  • No alcohol
  • No gambling
  • Benefiting stakeholders: We use tracker funds based on the MSCI Socially Responsible Investing (SRI) Indexes. These target the most responsible companies based on their disclosed ESG data. This biases portfolio exposure towards companies that are managing their social and environmental impacts well and demonstrating good corporate governance.
  • Contributing to solutions: Future Leaders uses thematic ETFs to increase portfolio exposure to sectors that are helping to solve global problems, including healthcare, clean energy and green bonds.

We’ve been a pioneer in the impact investing space over the last eight years. The launch of the EQ Future Leaders Portfolios sees us building on that reputation whilst responding to the changing market we work in to deliver a competitively priced multi-asset passive solution.

Going forward, our ambition is to evolve the portfolios as the universe of passive strategies increases.

Find out more

If you have a question about the EQ Future Leaders Portfolios or our DFM service, please get in touch.

Damien Lardoux, Head of Impact Investing EQ Investors

Email: damien.lardoux@eqinvestors.co.uk

About Damien Lardoux, Head of Impact Investing

Damien is the portfolio Manager for the EQ Future Leaders and EQ Positive Impact Portfolios. He is committed advocate of responsible investing and spreading the word about its benefits. Before joining EQ Investors, Damien worked for Bank of America Merrill Lynch.

Damien has an MSc in Management from Reims Management School and an MSc in Wealth and Asset Management from ESCP-EAP Paris Business School. He is also a CFA charter holder, being a regular member of the CFA Institute and CFA UK society.

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