Photo of pollution or smog across a skyline

MAS believes it is responsible to restrict investment in sectors based on their involvement in areas of harm. We restrict exposure to harmful sectors and integrate environmental, social and governance factors into investment decisions.

Investing your money in companies with strong ESG practices  

We consider environmental, social, governance (ESG) factors as part of the investment decision making process. We believe ESG factors, including climate factors, can impact long-term risk and return outcomes, and these should be incorporated into the investment and ownership decisions. 

We believe more sustainable companies can grow faster by selling into higher-value markets, attracting better employees, and reducing regulatory risks. We consider ESG issues throughout the investment process, including in the research, analysis, and selection of companies.  

ESG illustration table

 

Limiting your exposure to harmful industries 

We do not invest in companies whose principal business activity involves fossil fuels, weapons, and tobacco.

Principal business activity is defined in this context as activities that generate revenues of 10% or more of total company revenues, or 0% of total revenues for companies that manufacture or produce tobacco, tobacco-based products or nicotine alternatives, or manufacture or sell controversial weapons including cluster munitions, anti-personnel mines, and nuclear explosive devices.

  • Fossil Fuels
  • Weapons
  • Tobacco
  • Controversial companies

We do not invest in companies that generate 10% or more of their revenues from: 

  • the exploration, extraction, refining, or processing of oil, gas, or coal 
  • the supply of equipment and services to oil and gas exploration 
  • oil, gas, or coal-based power generation. 

N.B. Investments in metallurgical coal and private equity are approved exceptions to the MAS Responsible Investment Policy.   

  • We do not invest in companies that generate any revenue from the manufacture or sale of controversial weapons such as cluster munitions, antipersonnel mines, or nuclear explosive devices. 
  • We do not invest in companies that generate 10% or more of their revenue from weapons systems, component and support systems, or weapons services. 
  • We do not invest in companies that generate more than 10% of their revenue from production and distribution of firearms or small arms ammunition intended for civilian use. 
  • We do not invest in companies that generate any revenue from the production or manufacture of tobacco, tobacco-based products, or nicotine alternatives. 
  • We do not invest in companies that generate 10% or more of their revenue from the sale of tobacco. 

 

We do not invest in companies involved in ‘very severe and ongoing controversies’ as identified by MSCI’s ESG Controversy assessment.