Our insights and Impact Reports have been providing critical perspectives and reflections on the issues at the nexus of sustainability and investment management since 2014.
Our research specialists set out the critical problems that our investments are helping to solve. We provide examples of the companies held in the strategy and how they contribute to these solutions as well as data on how well we are helping to reduce greenhouse gas emissions and promote more sustainable businesses.
Our latest impact report underscores our clear intention to invest in companies that provide solutions to critical sustainability challenges, connecting our investors with a brighter, healthier future – for people and the planet.
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Report contents
- Section 1. An investment business on a mission
- Section 2. Impact intentionality
- Section 3. Enterprise impact: How our investments contribute to sustainability
- Section 4. WHEB’s investor contribution: Stewardship and engagement
- Section 5. WHEB’s investor contribution: Sustainability at WHEB
- Section 6. Investment Advisory Committee Statement
- Section 7. Outlook
IMPACT CALCULATOR
The Pengana WHEB Sustainable Impact Fund invests exclusively in impactful companies which produce goods and services that solve sustainability challenges.
The impact calculator illustrates the underlying positive impact that companies in the Fund’s investment portfolio help create.
This positive impact is ultimately generated by the end users of the products and services, for example: the owner of the electric vehicle, or the homeowner who installs insulation or buys renewable power. Investors in the Pengana WHEB Sustainable Impact Fund are aligned with these positive impacts by investing in the companies that manufacture these products.
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How We Invest
Mapping WHEB’s Impact
All products and services have an impact
We believe that understanding impact is becoming a ‘third dimension’ of investment expertise, alongside established disciplines in assessing investment risk and return. Our team of sustainability experts have developed bespoke tools that are used to analyse companies as part of our investment process.
- The Impact Engine is an analytical tool that helps us evaluate the ‘intensity’ of the positive impact from products and services offered by companies. This tool captures the different dimensions of positive impact that are created by products and services to provide an overall intensity rating for the company.
- The Fundamental Quality analysis is the second step in our process. This framework is used to assess the overall quality of the business, including how it manages critical Environmental, Social and Governance (ESG) issues alongside the quality of the company’s business model and financial management.
Our interactive Impact Map provides a visual representation of the outcomes of this analysis, plotting the impact intensity on the x axis and the fundamental quality on the y axis.
Click on the ‘dots’ plotted on the map to see the impact engine score and fundamental quality score we’ve given to each of our portfolio companies. There’s also the option to toggle the view to see how business sectors generating negative impacts (Businesses ‘at risk’) compare.
Considering negative impacts
When we analyse companies, we think carefully about any potential negative impacts associated with their products and services as well as their operations. Our disciplined approach means that we only invest in companies where we are clear on the overall positive impact of the business.
As a result, we have to date never invested in any company with activities significantly (>5% of revenues) involved in the production and sale of alcoholic beverages, cosmetics where animal testing has been involved, gambling products or services, fossil-fuel exploration or production, intensive farming practices, nuclear power generation, pornographic materials, unsustainable timber products or weapons.
Furthermore, the strategy will not have any exposure to the following activities and a 0% revenue threshold applies:
- Companies involved in the production of tobacco, manufacture of nicotine alternatives and tobacco-based products;
- Companies involved in the development, production and maintenance of nuclear weapons;
- Companies involved in the development and production of biological and chemical weapons, depleted uranium ammunition/armour, anti-personnel mines or cluster munitions/ sub-munitions and their key components, in line with international regulations banning investment in these industries.
We consider these products to have a significant negative impact. Companies that have significant activities in these areas would not be considered to have an overall positive impact and would therefore be ineligible for investment.
Only 15% of listed companies reach our positive impact threshold criteria to be included in WHEB’s universe as potential candidates for investment.
* At risk’ businesses have been assessed at the level of the sector and are included for illustrative purposes only.
UN Sustainable Development Goals
The UN Sustainable Development Goals (SDGs) were agreed by the world’s governments with the help and support of the United Nations in 2015.
The 17 goals set out aspirational and demanding targets for the world to achieve by 2030. This sends a powerful message to the investment community as to what the world’s governments consider as development priorities.
The SDGs are not used as an analysis framework within our investment process as our strategy predates them. However, we recognise that the SDGs are a useful framework for reporting. WHEB’s strategy addresses seven of the SDGs directly and the remaining 10 indirectly.
Click on each Sustainable Development Goal to see examples of how WHEB’s investment strategy supports that goal.
PENGANA CAPITAL LIMITED
ABN 30 103 800 568
AFSL 226566
Suite 1, Level 27, Governor Phillip Tower,
1 Farrer Place, Sydney, NSW, 2000
T: + 61 2 8524 9900
E: clientservice@pengana.com
Pengana Capital Limited, ABN: 30 103 800 568 AFSL 226566 is the responsible entity and issuer of units in the Pengana WHEB Sustainable Impact Fund (ARSN 121 915 526) (the Fund). A product disclosure statement for the Fund (PDS) is available and can be obtained from our distribution team. A person should obtain a copy of the PDS and should consider the PDS carefully before deciding whether to acquire, or to continue to hold, or making any other decision in respect of, the units in the Fund. This report was prepared by Pengana Capital Limited and does not contain any investment recommendation or investment advice. This report has been prepared without taking account of any person’s objectives, financial situation or needs. Therefore, before acting on any information contained within this report a person should consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Neither Pengana Capital Limited nor its related entities, directors or officers guarantees the performance of, or the repayment of capital or income invested in, the Fund. Past performance is not a reliable indicator of future performance, the value of investments can go up and down.
