Liontrust Sustainable Investment Annual Review 2022 - Flipbook - Page 19
Sustainability
Measuring sustainability 1: How we think about sustainable companies and the positive impacts they make
We aim to outperform the market by investing in sustainable companies
and use our influence as shareholders to drive positive change. To
summarise our investment process (set out in detail on pages 5 and 6),
we are looking to find sustainable companies characterised as being:
• On the right side of positive trends in our economy to make it
cleaner, healthier and safer (and enjoying structural growth as a
result)
• Proactively managed and whose overall business is aligned with
positive trends
• Profitable and likely to continue to generate good investment returns
• Where we believe the market has underappreciated this profitable
growth
This is what drives our investment decisions, and our investment process
is designed to embed these aspects into our stock selection.
In terms of sustainability, the resulting portfolios are invested in
companies that:
1) Are exposed to positive sustainable investment themes while
avoiding structural decline
2) Have more sustainable products and services and are more
proactively managed
3) Are subject to challenging engagement from us to improve how
they are managed
Exposure of the SF funds to our Sustainable investment themes
As set out on page 6, we have identified 20 investment themes that
help us to understand positive trends in the market and find companies
exposed to structural (long-term) growth as well as avoiding those suffering
structural decline. On average, our main SF strategies had the below
broad weightings to these themes at the end of 2021; this demonstrates
the diversified nature of our themes, giving the funds exposure to many
different areas of our economy expected to experience secular growth.
Exposure to Sustainable investment themes is disclosed for each fund
individually and available from our website at liontrust.co.uk.
18%
16.4%
16%
14%
12.3%
12%
10%
7.9%
8%
6.5%
6.3%
6%
5.6%
5.4%
5.0%
4.5%
4.5%
4.3%
4%
3.8%
3.1%
2.9%
2.3%
2.2%
2%
1.9%
1.8%
1.6%
1.3%
0.5%
Portfolio construction
Delivering healthier foods
Encouraging sustainable leisure
Making transportation more efficient or safer
Increasing electricity from renewable sources
Improving management of water
Providing education
Better monitoring of supply chains and quality control
Enabling healthier lifestyles
Leading ESG management
Connecting people
Providing affordable healthcare
Delivering a circular materials economy
Enhancing digital security
Insuring a sustainable economy
Saving for the future
Improving the resource efficiency of
industrial and agricultural processes
Building better cities
Improving the efficiency of energy use
Enabling innovation in healthcare
Increasing financial resilience
0%
Source: Liontrust/Factsheet 31.12.22: simple average exposure for SF UK Growth, SF European Growth, SF Global Growth and SF Corporate Bond funds.
Liontrust Sustainable Investment: Annual Review 2022 - 19