The Fund will not invest in companies which have an exposure of greater than 5%, as measured by revenue, in the following sectors: pornography, alcohol, gambling, nuclear power, and tobacco. It will not invest in companies that derived any revenue from tobacco production, or which are assigned to the Tobacco Industry of the Global Industry Classification Standard. The Trust will not invest in companies that derived any revenue from controversial weapons, being defined as anti-personnel landmines, cluster munitions, and chemical, biological and nuclear weapons.

The Fund Manager conducts a detailed, proprietary ESG analysis of new companies and issuers considered for the investable universe and reviews the ESG analysis on a periodic basis. Impax considers five main pillars within its ESG analysis: Governance, Material Environmental, Social, and Other Risks, Climate Change, Human Capital Management and E, D&I, and Controversies.

Impax offers several thematic environmental investment strategies, which are built upon the framework of the "Impax Environmental Markets Taxonomy" and account for two-thirds of the company's assets under management. These strategies are encapsulated within Impax Environmental Markets, covering diverse sectors such as energy (including renewable energy and energy efficiency), clean and efficient transport (with a focus on pollution reduction and public transport), sustainable food (encompassing logistics, safety, and packaging), water (including infrastructure, treatment, efficiency, and utilities), circular economy initiatives (such as waste management and recycling), and smart environmental solutions (including digital infrastructure and testing).

Engagement is an important part of the ESG analysis and investment process for listed equities and fixed income. Impax engages with companies and other issuers when we have identified specific ESG issues or concerns, when we require further information regarding an ESG aspect (that is not publicly disclosed) and/or to encourage improvement in company ESG policies, processes and disclosures. 

Impax has been a signatory to United Nations-backed Principles for Responsible Investment (PRI) since 2008. Impax is committed to intentionally avoiding investment in activities and companies that do not adhere to international norms and conventions. Impax uses a Global Standards Screening which assesses companies' impact on stakeholders and the extent to which a company causes, contributes or is linked to violations of international norms and standards. The underlying research provides assessments covering the OECD Guidelines for Multinational Enterprises and the UN's Global Compact Principles, as well as the International Labour Organization's (ILO) Conventions, and the UN Guiding Principles on Business and Human Rights (UNGPs). As part of Impax's climate risk analysis and impact measurement, it uses the Intergovernmental Panel on Climate Change (IPCC) 1.5- and 2.0-degree scenarios, to assess the global level of emissions reduction required to limit warming to 1.5- or 2.0-degrees by 2030.