How you can invest in a climate-focused way
We're proud of how we invest and want you to be too. That's why we often describe the way we invest our ISAs as “climate-focused”.
But what does this really mean?
Well, when you open a OneFamily Stocks and Shares ISA, Lifetime ISA or Junior ISA, your investments will be specifically chosen to minimise their impact on the climate.
Keep reading to find out about our three investment styles and how the funds they relate to are selected using climate-focused criteria.
Choosing your investment style
When you open your ISA, you'll choose a fund to invest in by picking one of three investment styles - Cautious, Balanced or Adventurous.
Each investment style invests in one of three OneFamily life funds:
- Cautious - invests in: OneFamily Global Select 35% Shares fund
- Balanced - invests in: OneFamily Global Select 65% Shares fund
- Adventurous - invests in: OneFamily Global Select 100% Shares fund
The main difference between the funds is how much they invest in company shares (also known as equities) versus investments like corporate bonds, as shown in the table below.
Investing that aligns with your values
When you choose our Stocks and Shares ISA, Lifetime ISA or Junior ISA you invest in underlying funds that make investment choices with the climate in mind.
So you can invest in your future, and your family's future, in a climate-focused way.
Find out about our Stocks and Shares ISA
| Investment style | OneFamily fund name | Company shares (equities) | Corporate bonds |
|---|---|---|---|
| Cautious | Global Select 35% Shares | 35% | 65% |
| Balanced | Global Select 65% Shares | 65% | 35% |
| Adventurous | Global Select 100% Shares | 100% | 0% |
| OneFamily Global Select 35% Shares | |
|---|---|
| Company shares (equities) 35% |
Corporate bonds 65% |
| OneFamily Global Select 65% Shares | |
|---|---|
| Company shares (equities) 65% |
Corporate bonds 35% |
| OneFamily Global Select 100% Shares | |
|---|---|
| Company shares (equities) 100% |
Corporate bonds 0% |
The value of your investments is likely to go up and down over time. This is normal for this type of investing, but it does mean there's a risk that you could get back less than you've paid in if you withdraw at a time when the value is lower.
Powered by State Street Investment Management
Our OneFamily funds don’t buy company shares or corporate bonds directly, instead they invest in three “underlying funds" provided by our investment manager, State Street.
| Asset | Underlying fund(s) invested in |
|---|---|
| Company shares (equities) | State Street Climate Transition World Equity Beta Fund |
| Corporate bonds | State Street Climate Transition USD Corporate Bond Beta Fund, and State Street Climate Transition EU Corporate Bond Beta Fund |
The climate-filtration process
The underlying State Street funds prioritise investments by applying what's known as an "ethical filtration process".
This approach has two phases. The first involves screening out (excluding) companies that make money from activities that don't meet the climate-focused criteria of the funds. The companies that are left are then scored based on their performance against the climate-focused criteria.
This process dictates which companies the funds will prioritise investing in.
Phase 1: Activity screens
Companies are screened out (excluded) if they rely heavily on specific activities to make money, such as Arctic oil and gas, weapons and firearms production, thermal coal and tobacco.
Phase 2: Prioritisation scoring
The remaining companies are then scored based on climate-based scoring criteria including:
- Greenhouse gas intensity
- Fossil fuel reserves
- Brown revenues (% revenues from fossil fuel related activity)
- Green revenues (% revenues from low carbon activity)
- Investment in Green Bonds (which are used to fund projects that have positive environmental benefits)
- Alignment with climate temperature increase targets
- Climate-related risks and opportunities
- Carbon footprint and management of carbon risks
The policy of the underlying funds is to invest at least 90% of the funds’ assets in companies or bonds that meet the environmental and social characteristics they're measured on.
A minimum of 25% of the funds will also invest specifically in sustainable investments.
Just so you know
The ethical criteria we've described on this page is accurate at the time of writing.
State Street is the current provider of our underlying funds, but this could change in the future. This means the associated ethical criteria used for our ISA investments could also change.
If there are any changes, we'll update this page and the relevant fund factsheets so you have the most up to date information about where your money is invested.
For further information about our funds, take a look at our fund information page.
What would you like to do next?
Find out about opening a Stocks and Shares ISA
Our Stocks and Shares ISA offers three climate-focused funds. It can help you invest for your long-term money goals.
Find out about opening a Lifetime ISA
Our Lifetime ISA offers three climate-focused funds. It can help you save for your first home or for life after 60.
Find out about opening a Junior ISA
Our Junior ISA offers three climate-focused funds. It can help you build a pot of money for your child when they turn 18.