Fund Factsheets updated with ESG information

Irish Life Investment Managers (ILIM) are committed to sustainability in pension investment and are leaders in Responsible Investment in Ireland. ILIM’s approach of exclusions, integration and engagement is making the difference today to deliver a better, more sustainable tomorrow.

What is new?

We understand that you want to see measures and metrics to help understand how the ILIM investment strategies are rated within an ESG context. To address this, a lot of work has been done in the background to update the fund factsheets with ESG relevant information to keep you and pension plan members informed how their funds meet Responsible Investment criteria.

So you, our clients and the pension plan members know their money is working hard for them to create and preserve long-term investment growth and also build a more sustainable future for all of us.

Which fund factsheets does the ESG update apply to?

The update applies to all Irish Life Corporate Business funds that are rated as Article 8 under the Sustainable Finance Disclosure Regulation (SFDR). This includes our core EMPOWER fund range.

How does the ESG fund factsheet update work in detail?

Let’s looks at the EMPOWER Growth Fund as an example.

The sustainability objective of the fund is now included in the fund facts at the start of the factsheet.

The following graphic, setting out ILIM’s approach to Responsible Investing, is now included in fund factsheets for easy reference.

A new third page has been added to all Article 8 Funds (SFDR) with more detailed ESG data and ratings:

Environmental, Social and Governance Risk Score: This score rates the E, S and G risk credentials of the fund against a market benchmark. A lower score indicates a lower level of unmanaged ESG risk and potential risk to the economic value.
Carbon Intensity: This is a metric used to compare company emissions across industries. The absolute emissions are divided by total earnings with the figure expressed in tonnes of carbon dioxide equivalent per million USD of total earnings.
Fossil Fuel: Fossil Fuel Involvement measures the percentage of earnings that companies get from thermal coal extraction, coal-based power generation, oil and gas production, oil and gas-based power generation, and oil and gas related products and services.
Active Ownership: This graphic shows an overview of the 2020 voting and engagement highlights. ILIM recognise and adhere to the principle of active ownership and exercise the right to vote on issues submitted for shareholder vote. ILIM’s active engagement policy promotes constructive engagement with investee companies to promote strong corporate governance and effect positive change relating to identified environmental, social and governance issues. More information on ILIM’s Voting and Engagement policy and activity is available here https://www.ilim.com/responsible-investing/active-ownership/