Corporate Responsibility

Fulcrum has made a firm commitment to being a responsible investor and to actively consider clients’ sustainability objectives.

A Responsible Investor

We are aware of the challenges facing the natural environment and believe that financial markets have an important role to play in creating a more sustainable world. We believe that the allocation of capital can affect society and the environment, and we aim to play a positive role in this change.

 

We are conscious that we do not operate in isolation and that the way we invest or manage our assets might impact, positively or negatively, environmental and social sustainability objectives. If we invest in a responsible manner, our partners, colleagues and clients can all be proud of their association with Fulcrum. This is a strong motivation.

 

As a firm, we aim to act as responsible investors. For us, this means enabling our investment professionals to: consider and integrate ESG risks and sustainability issues in their investment decision-making; acting as good stewards of capital in the way we exercise our voting rights; engage with companies and the wider industry; and communicate and interact with our clients on these issues.

The pillars of our approach:

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ESG Integration

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Stewardship

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Clients' values

Timeline

Responsible Investing at Fulcrum

Over the past years we have integrated responsible investment in a holistic way across the firm and developed strong relationship with industry initiatives.

Became signatories to the UN PRI
Set up the Responsible Investment Committee
Launched the TM Fulcrum Diversified Liquid Alternatives Fund with a clear focus on ESG integration.
Sustainalytics logo
Started receiving ESG data from Sustainalytics
Became signatories to TCFD
Started collaboration with Iceberg Data Lab
Launched the Fulcrum Climate Change Fund, our first impact-focused fund
Became signatories to IIGCC, CDP and ClimateAction 100+
2015
2017
2018
2018
2019
2019
2020
2020

Corporate sustainability

Our Responsible Investment Committee

The Fulcrum Responsible Investment Committee (RIC) work to incorporate Responsible Investing elements into all aspects of the firm and to implement initiatives where it can improve as a sustainable business. The committee includes members from across the business, reflecting our focus on holistic integration. A sub-committee of the RIC is the Stewardship Committee, which looks at how we exercise voting rights.

United Nations Principles for Responsible Investment (UN PRI)

We have been signatories since 2015 and are committed to the six principles. Our overall UN PRI score in 2019 was A.

UK Stewardship Code

We are in the process of becoming signatories to the 2020 UK Stewardship Code, with the aim to be formal signatories by the October 2021 review.

ESG Integration

A Holistic Approach to ESG

We believe it is part of our fiduciary responsibility to consider all factors that affect investment performance. In this regard, it is crucial to consider Environmental, Social and Governance risks alongside more traditional risk metrics to gain a more complete picture.

 

We have made considerable efforts to achieve a holistic integration across all the asset classes we invest in including a range of alternative investments. The nature of the integration depends on the particular investment solution and the particular asset class and opportunity set.

We operate as one cohesive investment team and as such the best way to maximise our change to meeting client objectives is to have these risks Integrated in the investment team rather than separate function.

We are delighted to have been rated A by the UN PRI, including an A for our efforts to integrate ESG in our equity investments.

Capability

Responsible Investing Capability

Worldwide

We have developed a range of innovative solutions to address the sustainability challenges of our time.

Stewardship

Engagement

We engage with companies by highlighting the importance we place on their approach to environmental and social issues. In particular we focus on climate change and decarbonisation.

Climate Action 100+

The reduction of GHG emissions is crucial in order to prevent further global warming. This is why we are signatories to Climate Action 100+, which engage with the most polluting companies – encouraging them to drastically reduce their emissions.

Science-Based Targets initiative (SBTi)

Moving from a fossil fuel reliant economy to a low-carbon one is a challenging task. This is why our main engagement target is to encourage companies to set science-based targets so that it is clear how they intend to make this transition.

Carbon Disclosure Project (CDP)

The foundation of any climate metric is credible and extensive carbon emission disclosure. CDP is the market leader and we are supportive of their work to improve how companies report.

VALUES

A Focus on Climate Change

Climate Change is an urgent and catastrophic issue. It is considered one of the biggest risks to our way of life, and as a multiplier issue, Climate Action also affects many of the other Sustainable Development Goals as the physical consequences of an altered climate affect weather patterns, reducing access to food (2) and clean water (6), challenging both life below water (14) and on land (15).

Sustainable Development Goals

The firm has a particular concern about the devastating consequences of accelerating climate change, and an awareness of how this both poses a risk to investments as well as the important role the financial sector must play to mitigate climate change.  Consequently, investing in a climate-aligned manner is important for us and we aim to embed this holistically across the firm. In particular, we focus on how the financial industry can contribute to shifting financial flows to fund the green transition.

 

We believe strongly that climate change considerations should be integrated into investment decision making, both as a risk consideration and from an impact point of view. This is why we became signatories to TCFD in 2019.

 

TCFD logo
IIGCC logo

Our Fulcrum Climate Change Fund is designed to be aligned with the Paris Agreement’s below 2°C global warming target by allocating capital to companies that are well positioned for the low-carbon future and by engaging with companies that are not.

stewardship

Voting

We aim to act as good stewards of assets in the way we exercise our voting rights. Our focus on climate change means that we aim to vote in support of climate change mitigation efforts.

Our Fulcrum Diversified Liquid Alternatives Fund provides exposure to Real Assets, Alternative Credit and Diversifiers, integrates Responsible Investing and offers daily liquidity with no performance fees at any level.

POLICIES

Sustainable Financial Disclosure Regime

We have implemented SFDR as per the EU Regulation as outlined in our Sustainability Risk Policy.

Remuneration Policy
20 April, 2021
Remuneration Policy
Principle Adverse Impact Statement
14 April, 2021
Principle Adverse Impact Statement
Sustainability Risk Policy
01 April, 2021
Sustainability Risk Policy