The Fund has an objective of entirely excluding investments in companies that manufacture tobacco or tobacco-related products and controversial and nuclear weapons. In addition, the Investment Manager may avoid investing in sectors or companies whose activities may be considered harmful to the environment and/or society. This may include specific companies whose business activities generate more than 5% of revenue from adult entertainment, alcohol, animal cruelty, fossil fuels, gambling, logging old growth forests, nuclear power, predatory lending, selling and/or supplying tobacco and the manufacture and/or supply of weapons.

Loftus Peak identifies companies where its investment thematics align with Sustainable Development Goals. Out of the seventeen SDGs and its six thematics, the Manager has identified three consistent overlaps: energy as a technology as a contributor to Affordable and Clean Energy; Life Sciences as a contributor to Good Health and Well Being; and Connected Devices as a contributor to Safeguarding Peace. The holdings which currently meet SDG goals are outlined annually in the Manager's Sustainability Report.

Loftus Peak engages with investee companies as it believes that voting on shareholder resolutions to encourage action on key ESG issues facing companies is the key engagement method. Furthermore, it directly communicates with companies to address the ESG risks it has identified, to apply additional pressure or to clarify ambiguity in the company's current disclosures.

Loftus Peak is a signatory of the United Nations Principles for Responsible Investment, a supporter of the Task Force on Climate-Related Financial Disclosures, and a member of the Responsible Investment Association Australasia.