Sustainability is not the main reason Sifter Fund invests in any given company, but it helps us manage risks. <\/p>\n\n\n\n
The Sifter Fund’s ESG approach is practical and rigorous<\/h2>\n\n\n\n
Sifter Fund analysts and portfolio managers consider ESG a natural part of the investment process. In practice, this means that we do not analyze or invest in companies with poor ESG results. To streamline the process, we have excluded certain industries altogether.<\/p>\n\n\n\n
In the Sifter investment process, we eliminate companies that have<\/h3>\n\n\n\n- Tobacco and cannabis<\/li>
- Alcohol<\/li>
- Adult entertainment<\/li>
- Defence<\/li>
- Significant ESG shortfalls (as identified by, for example, MSCI\u2019s ESG database)<\/li><\/ul>\n<\/div>\n\n\n\n
If we identify inconsistencies in the portfolio companies, we examine how the company\u2019s management corrects the shortcomings and monitor their progress. <\/p>\n\n\n\n
Sifter Fund ESG metrics today<\/h2>\n\n\n\n
The Sifter Fund Global (ESG) rating is available on the Morningstar website. Morningstar rates the Sifter fund with a full 5\/5 globes<\/a> (December 31, 2021).<\/p>\n\n\n\n![\"MSCI](\"https:\/\/sifterfund.com\/wp-content\/uploads\/msci-esg-ratings-2022-1-1024x766.png\")
<\/a>According to MSCI ESG, the Sifter Fund receives the best possible rate AAA for the responsibility<\/a>.<\/figcaption><\/figure>\n\n\n\nHowever, we believe that these ESG scores are just one piece of the truth in sustainable investing. Therefore, we have gone further. The Net Impact analysis describes the impact of the company\u2019s products and services on the environment, health, use of information, and society.<\/p>\n\n\n\n
The Net Impact of the Sifter Fund on the environment and society<\/h2>\n\n\n\n
The Net Impact considers a company\u2019s whole value chain and its impact on the environment and society. This approach prevents tunnel vision: For example, a company might use relatively sustainable methods to grow sugar, but if the health impact of its products on the end consumers were not considered, the analysis would be flawed. The Net Impact analysis helps us avoid such pitfalls. <\/p>\n\n\n\n
In 2020, we asked Upright Project to carry out a Net Impact Assessment on the Sifter Fund. We were one of the first global equity funds to do so and the outcome was very favourable to us. For example, the net impact of Sifter\u2019s portfolio was far more positive than that of S&P Global 100. See the report below for further details.<\/p>\n\n\n\n
Read also: Responsible investment \u2013 the net impact creates a new perspective and indicators<\/a><\/p>\n\n\n\n![\"Open](\"https:\/\/no-cache.hubspot.com\/cta\/default\/2579063\/cf6fdf27-3939-4783-a1bd-66c0f481e652.png\")
<\/a><\/span>
If we identify inconsistencies in the portfolio companies, we examine how the company\u2019s management corrects the shortcomings and monitor their progress. <\/p>\n\n\n\n
Sifter Fund ESG metrics today<\/h2>\n\n\n\n
The Sifter Fund Global (ESG) rating is available on the Morningstar website. Morningstar rates the Sifter fund with a full 5\/5 globes<\/a> (December 31, 2021).<\/p>\n\n\n\n However, we believe that these ESG scores are just one piece of the truth in sustainable investing. Therefore, we have gone further. The Net Impact analysis describes the impact of the company\u2019s products and services on the environment, health, use of information, and society.<\/p>\n\n\n\n The Net Impact considers a company\u2019s whole value chain and its impact on the environment and society. This approach prevents tunnel vision: For example, a company might use relatively sustainable methods to grow sugar, but if the health impact of its products on the end consumers were not considered, the analysis would be flawed. The Net Impact analysis helps us avoid such pitfalls. <\/p>\n\n\n\n In 2020, we asked Upright Project to carry out a Net Impact Assessment on the Sifter Fund. We were one of the first global equity funds to do so and the outcome was very favourable to us. For example, the net impact of Sifter\u2019s portfolio was far more positive than that of S&P Global 100. See the report below for further details.<\/p>\n\n\n\n Read also: Responsible investment \u2013 the net impact creates a new perspective and indicators<\/a><\/p>\n\n\n\n<\/a>The Net Impact of the Sifter Fund on the environment and society<\/h2>\n\n\n\n
<\/a><\/span>