Ausbil has announced that its Sustainable Equity fund will mark its three year anniversary formally excluding fossil fuels.
Prior to the move, the fund had excluded material investments in controversial activities such as uranium, thermal coal, gambling, alcohol, tobacco, weapons and armaments, and pornography.
Ausbil has now added fossil fuels to the list of companies which are uninvestable for its Active Sustainable Equity fund, but with which it would still engage on ESG issues to help improve the future, it said.
According to Nicholas Condoleon, portfolio manager for the Ausbil Active Sustainable Equity fund and head of equities research, a Biden Presidency was expected to accelerate policy initiatives supportive of the substitution of fossil fuels by renewable fuel sources, making it a very exciting time to be in sustainable investing.
“The energy transition is well underway and smart capital is investing in the future of energy that is cleaner, renewable and contributes to the sustainability goals around climate change,” he said.
Ausbil’s environmental, social, governance (ESG) and sustainable investing model was based in fundamental ESG research engagement and advocacy across the universe of investable companies on the Australian Securities Exchange (ASX) and its ESG research team powers a program of face-to-face engagement with the boards and leaders of Australia’s listed companies, the firm said.
Ausbil also said it saw investors, both the world’s biggest institutions and mum and dad super investors, driving the move towards sustainable investing.
“Whether it is climate change, modern slavery or governance, sustainable investors want their capital to be responsible. They don’t want their capital to overlook these issues,” Mark Knight, Ausbil’s head of distribution, said.