Hartford Schroders International Stk Fd has several promising attributes that may appeal to sustainability-focused investors.
This strategy has an above-average Morningstar Sustainability Rating of 4 globes, indicating that the ESG risk of holdings in its portfolio is relatively low compared with those of its peers in the Global Equity Large Cap category. ESG risk measures the degree to which material environmental, social, and governance issues, such as climate change and inequalities, could affect valuations. ESG risk differs from impact, which is about driving positive environmental and social outcomes for society’s benefit.
Hartford Schroders International Stk Fd has a Carbon Risk Score of 6.63, indicating portfolio companies face low carbon-related risks in the transition to a low-carbon economy. Currently, the fund has 10.06% involvement in fossil fuels, which compares favorably with 10.50% for its average category peer. Companies are considered involved in fossil fuels if they derive some revenue from thermal coal, oil, and gas. By prospectus, the fund aims to avoid or minimize holdings in companies associated with thermal coal, and as expected, the fund does not currently invest in such companies.
One potential issue for a sustainability-focused investor is that Hartford Schroders International Stk Fd doesn’t have an ESG-focused mandate. A fund with an ESG-focused mandate would have a higher probability to drive positive ESG outcomes. The fund exhibits relatively high exposure (9.68%) to companies with high or severe controversies. Companies with high or severe controversies may be involved in incidents such as corruption, employee abuses, environmental incidents, and corporate scandals that pose serious business risks to the company.