The Fund employs exclusionary screens to avoid investments in companies that cause significant social or environmental harm. The Fund will not invest in companies directly involved in tobacco production (including e-cigarettes and inhalers), or controversial weapons manufacture. The Fund will also not invest in companies which derive 10% or more of their gross revenue directly from extraction, exploration, distribution, or refinement of fossil fuels, or fossil fuel-based power generation, production of alcoholic beverages, manufacture, ownership or operation of gambling facilities, gaming services or other forms of wagering, manufacture of non-controversial weapons or armaments, manufacture or distribution of pornography, and uranium mining for the purpose of nuclear power generation.

The Manager recognises that Environmental, Social and Governance (ESG) factors can create risks and opportunities for companies and therefore incorporates ESG risks into its analytical framework and portfolio construction. Since 2008, the Fund's strategy moved beyond "screening out the bad" to "screening in the good" using Environmental, Social and Governance (ESG) analysis. The Manager works closely with responsible investing business Regnan to ensure ESG factors are at the core of the process. Typically, the Manager will prefer exposure to companies which perform well on ESG or sustainability metrics, or otherwise have plans to improve such performance, which it believes are credible.

ESG analysis encompasses evaluating a company's management of ESG risks and opportunities, including those related to climate change, labour rights, and supply chain management. It also involves assessing the company's business conduct and implementation of sustainability practices. Furthermore, the analysis evaluates the environmental and societal benefits of the company's products or services, as well as their contribution to addressing social and environmental challenges.

Pendal has been a signatory to the United Nations supported Principles for Responsible Investment (PRI) since 2007. In 2018 Pendal commenced public reporting aligned to the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).