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What are climate-focused funds?

When you open a OneFamily Stocks and Shares ISA or Lifetime ISA, you'll be asked which of our two funds you'd like to invest in: Global Equity or Global Mixed.

You might notice that we describe Global Equity as a "climate-focused" investment option.

That's because this fund takes into account the climate credentials of companies when deciding which companies to buy shares in.

It scores companies based on things like how much carbon they produce and how prepared they are for climate change. It also excludes companies that make 10% or more of their money in ways that could be viewed as unethical, such as building controversial weapons.

You can find out more about how the scoring system works, what the exclusion criteria is and how the fund selects companies after the scoring is applied in our 'How we invest your money for a brighter future' page.

The other fund option is Global Mixed. Up to 35% of this fund is invested in company shares via the Global Equity fund where climate scoring is applied. But to make this fund a lower risk option, at least 65% of it is invested in lower risk, fixed-interest assets and this part of the fund doesn't use a climate scoring system to select investments.

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