As human beings, we have become increasingly more aware of the impact business practices can have on the environment and, in turn, what this may mean for future generations.
At BIS Cosgrove we have seen an increase in client enquiries around how best to reconcile their views on sustainability with their investment goals.
In the past, the solution has been somewhat difficult – whilst there have been products available that provide exposure to sustainable industries, the products themselves have been poorly constructed and lacking in sound underlying investment principles.
But over time, this segment of the market has matured. Investors who wish to accomplish this dual objective – balancing sustainability with robust investment strategies – have a range of excellent options available.
With that in mind, we are proud to announce that Dimensional Fund Advisors have developed three new cost-effective sustainability trusts that use an evidence based approach to evaluate companies on a focused set of sustainability issues whose impact can be readily measured and reported:
- The Australian Sustainability Trust
- The Global Sustainability Trust
- The Global Bond Sustainability Trust
Dimensional has confirmed that “the primary sustainability consideration of this approach is environmental impact from company emissions, including greenhouse gas emissions and potential emissions from fossil fuel reserves. The strategies also seek to reduce exposure to a select list of other key sustainability considerations. Dimensional utilises a combination of security selection and weighting within and across sectors to reduce exposure to companies with less sustainable business practices and increase exposure to companies with more sustainable business practices, while still maintaining broad diversification.”
If you would like to explore the role that the new suite of Sustainability Trusts may play in your investment arrangements, please don’t hesitate to contact our advice team for further details.
In the meantime, we will be discussing these new investment options with our clients as part of our ongoing review and management program.