Research report recognises Fundsmith’s industry-leading sustainability credentials
A new research report recently published by Funds Europe has recognised Fundsmith’s industry-leading sustainability credentials. The Funds Europe Carbon Impact Research Report for 2024 revealed that funds managed by Fundsmith LLP have the lowest carbon footprint of all surveyed firms, which included Europe's largest asset managers.
The report draws on data from 34 European asset managers, collectively overseeing around €32 trillion in assets. It assesses how these firms are addressing decarbonisation and net-zero goals. Notably, Fundsmith’s funds stand out as having the lowest carbon footprint at 4.54 tonnes of CO2 equivalent per €m of AuM while some firms reported figures exceeding 200 tonnes.
In addition to its leadership in carbon footprint, Fundsmith is also recognised for its strong commitment to the Science-Based Target Initiative (SBTi). 86% of Fundsmith’s portfolio companies have either committed to or established emissions reduction targets in alignment with SBTi, highlighting the firm’s focus on transparency and measurable progress.
Since launch in 2010, Fundsmith’s funds have invested in sustainable businesses that can be held for the long term. It has screened investments for sustainability in the widest sense, taking account not only the companies’ handling of environmental, social and governance policies and practices but also their policies and practices on research and development, new product innovation, dividend policy and the adequacy of capital investment.
Fundsmith launched the Fundsmith Sustainable Equity Fund in 2017. It follows the same strategy as the Fundsmith Equity Fund, offering investors a high quality, concentrated portfolio of resilient and sustainable global growth companies which are held for the long term, but with an important difference, namely the following sectoral exclusions:
• No Aerospace and Defence
• No Brewers, Distillers and Vintners
• No Casinos and Gaming
• No Gas and Electric Utilities
• No Metals and Mining
• No Oil, Gas and Consumable Fuels
• No Pornography
• No Tobacco
Terry Smith, Founder and Chief Investment Officer of Fundsmith, commented:
“I am delighted that Fundsmith’s sustainability credentials have been recognised as industry leading by Funds Europe in its Carbon Impact Research Report for 2024.”
Read the Funds Europe Carbon Impact Research Report for 2024 in full here:
https://funds-europe.com/?r3d=carbon-impact-research-report&https%3A%2F%2Ffunds-europe.com%2Fcarbon-impact-research-report%2F
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For further information please contact:
Charlotte Balbirnie
+44 (0)7989 528421
CBalbirnie@keplercomms.com
Caroline Villiers
+44 (0)7808 585184
CVilliers@keplercomms.com
About Fundsmith
Fundsmith is focused on delivering superior investment performance at a reasonable cost. It was established to be different from its peers so as to achieve a different result in line with Sir John Templeton’s axiom that “If you want to have a better performance than the crowd, you must do things differently from the crowd.” The rigorous research process of Fundsmith is central to what we do. We apply exacting standards to potential investments to produce a portfolio of resilient, sustainable businesses with excellent performance. Minimising the costs we incur on behalf of our customers in implementing our strategy also sits at the heart of our philosophy.
Fundsmith was established in 2010 by Terry Smith. The business is owned and controlled by its partners, who have worked closely together over many years, and is headquartered in London with offices in Mauritius and Connecticut, USA. It is structured to survive Terry Smith’s demise and continue with the same investment philosophy. All partners of the firm have a significant co-investment in our Funds delivering a clear alignment of interest. Ancillary activities are outsourced to some of the world's leading providers in order to deliver high quality operations whilst allowing the Fundsmith team to focus on the investment analysis and portfolio management and customer care.
www.fundsmith.com