The Fund Manager excludes direct investments in the sectors involving armaments and controversial weapons, tobacco and alcohol production, and coal and uranium mining. It does not invest in companies that generate more than 5% of their revenues from the extraction of oil and gas, intensive animal farming and aquaculture, gambling, or rainforest and old growth logging.

Ellerston believes that incorporating ESG considerations into the investment process of its products can lead to more informed and holistic investment decision-making and better investment outcomes. ESG is consistently integrated into each team's analytical processes, with the purpose being to identify and consider material risks and opportunities related to ESG factors. 

The Fund Manager has adopted an "ESG Matrix" framework for integrating ESG issues into its investee company analysis, alongside fundamental considerations. The ESG Matrix focuses on measurable factors related to the Environment, such as absolute levels and trends in factors including but not limited to carbon emissions, water consumption and waste production; Social, such as ethical behaviour, staff turnover levels, operational health and safety performance, diversity and community engagement; and Governance, such as structures and processes.

Ellerston is a signatory of the Principles of Responsible Investment (PRI) and a member of the Responsible Investment Association of Australasia (RIAA).