How HL is investing responsibly
Important information: investing for longer increases the likelihood of positive returns. Over a period of five years or more, investments usually give you a higher return compared to cash savings. But investments can go down as well as up in value, so you could get back less than you put in.
The information on this page isn't personal advice – ask for financial advice if you’re not sure what’s right for you.
Considering environmental, social and governance (ESG) factors is an important part of managing investment risk and identifying long-term opportunities. ESG considerations are integrated throughout our investment process and help us build portfolios designed to deliver sustainable long-term returns for investors.
As a signatory to the UN-supported Principles for Responsible Investment (PRI), responsible investment is embedded within the way we research investments, select fund managers, monitor portfolios and engage with companies.
Across our assets under management, we’re targeting a 50% reduction in carbon intensity by 2030, compared to a 2019 baseline. You can find more information in our climate-related disclosures and transition plan on our ESG hub.
Here's a closer look at the key things we're doing to invest your money responsibly across the HL Portfolio Building Blocks and HL Portfolio funds.
The HL funds are run by Hargreaves Lansdown Fund Managers Ltd., part of the Hargreaves Lansdown Group.
Responsible investment across HL-managed solutions
We see ESG as an additional form of due diligence alongside traditional financial analysis. This helps us better understand the risks and opportunities facing funds and the companies they invest in.
All fund groups we invest with must meet the minimum requirements set out in our ESG Investment Policy, including being a signatory to the PRI, and having set, or be working towards setting, net zero or near-term science-aligned targets covering their own operations. We also expect them to demonstrate strong stewardship by engaging with companies and using their voting rights to protect and enhance long-term shareholder value.
ESG considerations are integrated throughout our ongoing fund research and monitoring processes. Our analysts meet regularly with fund managers and undertake annual reviews covering a range of investment and sustainability-related factors. This includes assessing whether fund managers are taking account of ESG risks effectively, and the resources available to support ESG integration within the wider fund group.
To support this analysis, we use our proprietary fund house ESG assessment and climate score. These tools provide a consistent framework for monitoring both the quality of ESG integration at the fund group level and the climate characteristics of the funds we invest in, helping identify areas for further discussion and engagement where appropriate.
Stewardship and engagement
Engagement forms a core part of HLFM’s approach to managing sustainability-related risks. Where we identify material risks, we aim to ensure these risks are mitigated through engagement with a variety of stakeholders, including the companies directly, our underlying managers, regulators, industry bodies and others. We also work closely with a small number of collaborative engagement initiatives, which help to amplify our voice further.
For more information on our engagement approach, please see our Stewardship and Engagement Policy.
This is not personal advice. If you're not sure whether an investment is right for you, ask for financial advice.
Want to learn more?
If you want to learn more about responsible investing, see our responsible investment hub.
It includes helpful tips and tricks and investment ideas to help you get started investing responsibly.