U Ethical Investors

U Ethical is an investment manager with a difference. We believe in creating a better world by investing with purpose—today and into the future.

Our first funds were established in 1985 and over recent years we have grown steadily to become one of the largest ethical investment managers in Australia with over $1 billion under management. We are an autonomous social enterprise of the Uniting Church with an independent board and ethical advisory panel.

We have developed a reputation for our unwavering commitment to ethics-driven performance. Our ethical authenticity is central to who we are, not just what we do. We aim to provide our clients with competitive market returns. And as a social enterprise, we contribute the majority of our operating surplus to social justice advocacy and community programs.

We are one of only a few investment businesses in Australia to have been certified as a B Corporation, which verifies that we meet the highest standards of social and environmental performance, transparency and accountability. From institutions to individuals, our clients partner with us because we adopt bold positions on important ethical matters. We don’t shy away from holding companies to account on controversial issues.

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FY 2021/22 (FY 22)

Collaborating with companies you invest in and partner with to deliver emission reductions

Science alignment and coverage of targets

Committed
In progress
Achieved

In conducting U Ethical’s equity portfolio climate target analysis for 2021, we noticed a poor “effective coverage ratio” among Australian listed companies. In our view, a target is more comprehensive when it focuses on a company’s predominant emissions scope(s) and has a high coverage ratio, which is defined as ‘the proportion of emissions, within the target scope(s), subject to the target.

For our 2022 commitments to Climate League2030, we will be seeking from portfolio companies a commitment to:

  • science-based decarbonisation, and
  • more appropriate reduction targets coverage.

This means that we will ask companies to increase the percentage of their carbon footprints (across Scope 1, 2 and 3) covered by the companies’ decarbonisation targets. We will also continue to engage with companies that have no climate commitments, particularly in sectors that are usually considered less material such as healthcare, consumer discretionary and consumer services.

FY 2020/21 (FY 21)

Collaborating with companies you invest in and partner with to deliver emission reductions

Active ownership and engagement with top 10 holdings contributing to carbon exposure.

Committed
In progress
Achieved

U Ethical commits to prioritising further engagement with the top 10 portfolio holdings that contribute to the carbon footprint of the Australian Equities Trust – Wholesale and International Equities Trust – Wholesale. We have identified the top holdings contributing to carbon exposure by looking at these funds’ carbon footprint and low carbon transition profiles.

This action builds on U Ethical’s existing commitment to Climate Action 100+. U Ethical does not invest in companies that generate revenue from fossil fuels and for all new investee companies, we evaluate the historical trends in Scope 1 & 2 emissions, the extent of Scope 3 emissions, low carbon transition management capability and overall governance strength.

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Stockland

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Active Super

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HESTA

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