WealthSelect Responsible Blend 3 Responsible investment report

WealthSelect Responsible Blend 3 Responsible investment report Quarter 1 2022 This report is designed to help you review the ESG and responsible investing credentials of the portfolio and measure how the portfolio is achieving its objectives. The WealthSelect Responsible Blend 3 portfolio aims to achieve capital growth over a period of five years or more, while managing the Environmental, Social, and Governance (“ESG”) risk of the portfolio and maintaining a smaller carbon footprint than the reference index. The portfolio will have exposure to a diversified range of investments in the UK and globally by investing in funds that we identify as leaders in the integration and management of ESG factors. In addition to meeting these criteria, at least 50% of the portfolio’s assets will be in funds that pursue explicit environmental and/or social targets or characteristics as part of their investment process. Whilst the portfolio is actively managed, it will typically hold a minimum of 35% of its non - cash assets in passive investment vehicles that feature ESG screening. Please see the portfolio factsheet for the full objective. What is responsible investment and ESG? Responsible investment is defined by the UN - backed Principles for Responsible Investment (PRI) as “ a strategy or practice th at incorporates environmental, social and governance (ESG) factors into investment decisions and owners hip activity.” Environmental factors include issues such as climate change and resource scarcity, social facto rs look at people and relati onship aspects such as human rights and labour standards, and governance factors look at a firm’s posit ion on issues such as bri bery and corruption, and lobbying or political contributions. How do we measure the portfolio's responsible investment attributes? When managing and analysing the portfolios we need to have a suitable reference point for the portf olio’s carbon footprint. We use the MSCI All Country World Index as our reference index. The MSCI All Countries World Index is simil ar to the FTSE 100 Index in the UK, but it represents an average portfolio of global equities. More information on our investment ap proach and how different ESG factors are measured and calculated can be found in our ‘Guide to our responsible investment calcula tions’ at platform.quilter.com/wealthselect/guidetoRI .