Cardano’s Sustainable Investment Policy

Our sustainable investment policy outlines our vision on sustainable investing, why it  is necessary, areas to focus on and how to do it. This document describes how we integrate sustainability throughout all activities of Cardano.

Appendix A: Sustainable Investment framework

In this document we provide a detailed description of how we classify all companies, sovereigns and institutions and how this impacts whether they fit in one of our investment solutions. We describe whether companies’ activities fit in a sustainable society and whether companies have the capacity to adapt to the ongoing transitions we are seeing.

Appendix B: Impact Investment policy

This policy describes our vision on impact investment. It outlines the importance of financial institutions investing in impact solutions and how we as an investor can help companies to increase their positive impact.

Appendix C: Stewardship policy

This policy outlines how we see effective stewardship. It describes how we see the importance of engagement, which tools we use to work with companies to make the transition towards a sustainable way of operating and how we set engagement priorities. This is a group policy and meets the requirements for CRML for the purposes of the conduct of business regulations in the UK.

Appendix D: Voting policy

In this report, we describe our voting priorities for this year. This report will be updated annually to explain how we plan to vote during Annual General Meetings and on which topics we put most emphasis.

Appendix D1: Voting policy – market requirements

This document is an extension of our voting policy which outlines market specific considerations which apply to voting.

Appendix E1: Climate Strategy

This strategy provides further details the Sustainable Investment Policy, specifically on which steps we take to reach our climate target. It discusses which steps we take in our screening and engagement, which KPIs we set and how we monitor progress.

Appendix E2: Biodiversity strategy

This strategy further details the Sustainable Investment Policy, specifically on which steps we take to reach our biodiversity target. It discusses which steps we take in our screening and engagement, which sub-targets and KPIs we set and how we monitor progress.

Appendix E3: Water strategy

This strategy further details the Sustainable Investment Policy, specifically on which steps we take to reach our water target. It discusses which steps we take in our screening and engagement, which KPIs we set and how we monitor progress. This document also describes in detail why water is such an urgent topic for investors.

Appendix F: Sustainable Bond methodology

In this document, we outline how we assess sustainable bonds. We have developed a proprietary method to assess the quality and ambition level of green, social, sustainable and sustainability-linked bonds.

Appendix G: ESG scoring methodology

In this document, we explain how we calculate the proprietary Cardano ESG score. This score is one of the methods we use to further integrate sustainability considerations into investment decisions and portfolio management.

Corporate sustainability policy

This document sets out the Sustainability Policy for Cardano as it relates to our business whether delivered through our Cardano, Cardano Advisory or NOW: Pensions businesses.

Sustainability Policies and Disclosures

Sustainable Investment Policy

Cardano incorporates environmental, social and governance (ESG) risks and opportunities into all our investment analysis, decisions and advice. Empirical and academic evidence demonstrates that incorporating ESG risks leads to superior risk adjusted returns. ESG risks and opportunities impact investment strategies in different ways. Cardano incorporates the assessment of ESG risks and opportunities into all our investment activities, with a focus on the strategies for which ESG risks and opportunities have the highest potential impact. For more information on how Cardano assesses, monitors and manages ESG risks and opportunities please see the Cardano sustainability policies above.

Cardano supports the aims of UK and EU policymakers in financing sustainable growth. The Cardano sustainability policies reflect that sustainability is a dynamic concept; with fast-evolving policy change, technology change, and corporate and investment practice. We set out our approach to sustainability through our policies, which will be periodically updated to ensure Cardano is at the forefront of sustainability innovation. In addition, Cardano is developing its approach to positive real-world sustainability impact. This is an emerging area of work in the financial industry, and we encourage feedback from our clients, managers, counterparties and NGOs and we will support industry initiatives to develop meaningful principal adverse impact disclosures.

An explanation of the Cardano Approach to Responsible Investment for each asset class, based on the assessed impact of ESG risks and opportunities on returns can be accessed here.

Cardano Global Sustainable Equity Fund – SFDR Article 8 Disclosures

This page contains disclosures in respect of Cardano Global Sustainable Equity Fund made pursuant to Article 8 of the Sustainable Finance Disclosure Regulation (SFDR), based on Articles 23 to 36 SFDR Delegated Regulation (EU) 2022/1288

Stewardship

Stewardship is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries leading to sustainable benefits for the economy, the environment and society. Once capital has been allocated by asset managers, oversight is achieved through engagement with investee companies which improves corporate governance and drives ongoing stewardship. Cardano Risk Management Limited is a signatory to the Financial Reporting Council Stewardship Code which sets out principles for effective Stewardship. The below report sets out how Cardano Risk Management Limited applies the Code.

The Stewardship Code Report can be found here.