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Sustainable investing

Finding companies who are ESG leaders or have a positive impact on society

Sustainable investing is a modern and inclusive method of embedding values in investing. The difference compared to ethical investing is that the screening is mainly positive – rather than ‘screening out’, we ‘screen in’. It is about doing good, rather than avoiding bad.

But while we look to find companies that have a positive impact on society and have strong environmental, social and governance (ESG) credentials, we never lose sight of the fact that our aim as investors must always be to choose the investments that have the potential to outperform and make strong returns over the long term.

Our approach

In our view, markets often undervalue companies that can have a positive influence on society and the environment. Our Sustainable funds aim to exploit this inefficiency. Over the years that the sustainable funds have been operating, we believe that we have shown that what is positive for the environment and society is also better for long-term investing returns.

We look for companies that are innovative and responsible, that have a strong, long-term potential for growth, and aim to positively benefit society. This means companies involved in fields such as healthcare, cloud computing, artificial intelligence and urban regeneration. Companies that are leading the transition to a low-carbon economy, or driving social and economic development in emerging markets also form part of our holdings. We are constantly on the search for the leaders in their fields, with excellent management teams and strong franchises.

At the same time, we won't invest in companies involved with activities such as tobacco, nuclear power generation, animal fur and arms.

The team

Our team is an experienced one with a long-term track record. We’ve been managing the sustainable funds since 2003, through varied market, economic and social cycles. The team is supported by RLAM’s Equity and Fixed Income teams, and works closely with our Responsible Investment team.

A diverse fund range

We manage over £6 billion of assets in our award-winning sustainable funds, with these available in a range of options that will suit a number of different risk profiles. We manage six pooled funds, ranging from 100% fixed income to 100% equities, and a number that invest in both.

Royal London Global Sustainable Credit Fund

Combining our expertise in fixed income and heritage in sustainable investing. Two powerful elements. One global fund. 

Our new fund brings together long, successful track records in fixed income and sustainable investing. It harnesses both our unique credit philosophy and a rich heritage in sustainable investing over a diverse number of key investment areas, to deliver positive investment choices without compromising on potential risk-adjusted returns. 

Find out more Download our brochure

Global Sustainable Equity Fund

From Hsinchu to Herzogenaurach

A world of sustainable opportunities has never been closer.
We seek the very best ideas that drive positive change, from every corner of the world.
Innovative thinking. A global outlook. And a track record of award-winning sustainable investing. It’s all closer than you think.

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Stewardship and responsible investment 2021 report

The 2021 report covers our approach to stewardship, our engagement activity with companies and how we integrate ESG into our decision making.

Read the report