ESG factors are considered in screening certain stocks out of our investment universe, through the country review process and stock analysis as well as at the portfolio measurement stage - with the "E", "S", and "G" all being reviewed. The initial screening process aims to filter out stocks that don't meet minimum ESG standards. These filters include certain governance requirements, fair dissemination of information, stocks based in countries with a "Red" grading based on the Fund Manager's country risk assessment, and those that have higher financial exposure to fossil fuel earnings than an established maximum threshold.

4D applies a responsible investment rating as part of its stock quality assessment, which encompasses an ESG (Environmental, Social, and Governance) specific rating alongside other factors such as management quality, sustainable shareholder returns, and company financial health. Within the ESG specific rating, stocks are evaluated based on environmental sustainability, social responsibility, and governance standards.

Environmental considerations focus on a company's commitment to environmental sustainability, including policies that are environmentally neutral, targets for reducing carbon and greenhouse gas emissions, disclosure of environmental policies like ISO certification, strategies for embracing a greener future (e.g., the adoption of electric vehicles), the use of renewable energy sources, comparison with industry peers regarding environmental performance, and waste disposal policies.

Social considerations assess a company's adherence to labour standards and human rights, engagement with local and indigenous communities, focus on employee health and safety, trends in workplace incidents, and the provision of learning and development programs to employees.

Governance considerations include the analysis of security ownership, detailing key shareholders and their influence over management, minority protection, board structure to benefit shareholders, the separation of powers, board diversity and experience, and the frequency of board elections. Additionally, it reviews remuneration policies to ensure executive compensation aligns with shareholder outcomes.

4D has been a signatory to the United Nations Principles of Responsible Investment (UNPRI) since October 2020. It is supportive of the SDGs and also believes infrastructure investment specifically is central to achieving a number of the SDGs. 4D believes infrastructure investment is at the heart of achieving carbon neutrality within the next 30 years as outlined in the Paris Agreement. It supports the companies in which it invests in their efforts to decarbonise their own operations and invest in the required decarbonising infrastructure.