LEVELS OF TOLERANCE
At Epworth, we recognise the growing complexity and scrutiny around ethical investment. Our aim is to be both pragmatic and transparent, while never compromising the integrity of our principles.
To achieve this, we set out clear ethical policies and define measurable levels of tolerance for exposure to activities that fall outside our ethical positions. This ensures our clients can see exactly how we apply our values in practice, with both clarity and consistency.
Importantly, Epworth does not invest in companies that exceed these tolerance levels. This ensures our clients can see exactly how we apply our values in practice, with both clarity and consistency.
The thresholds below apply to directly held companies, based on the percentage of their revenue derived from activities that are not aligned with Epworth’s ethical stance.
To explore how these policies shape your investments, speak with a member of our team.
Tolerances you can trust
| Category | Threshold | Excluded Activities |
|---|---|---|
| Zero-Tolerance Areas | 0% revenue | Controversial Weapons |
| Fossil Fuels (extraction & refining) | ||
| Tobacco Manufacture | ||
| Pornographic Content (production) | ||
| High-Interest/Predatory Lending | ||
| Animal Testing (cosmetics/household) | ||
| Fur & Exotic Skins | ||
| Low-Threshold Areas | 5% revenue | Strategic & Combat Weapons |
| Civilian Firearms & Ammunition | ||
| Tobacco-Related Products | ||
| Pornographic Distribution | ||
| Cannabis (non-medical) | ||
| Gambling | ||
| Fossil Fuels (expanding coal, no net-zero plan) | ||
| Breast Milk Substitutes | ||
| For-Profit Incarceration | ||
| Medium-Threshold Areas | 10% revenue | Alcohol |
| Animal Testing (non-cosmetic) | ||
| Conduct-Based Exclusions | Any level | Breaches of international standards |
| Operating in high-risk jurisdictions | ||
| Linked to severe environmental harm | ||
| Climate misalignment |
Pooled Fund Policy
At Epworth, our unique approach to responsible investment assures clients that their assets are managed in line with clear ethical principles. While most investments are managed in-house, we sometimes draw on external expertise through pooled funds to access certain asset classes – such as infrastructure, property, or private equity – that would otherwise be difficult or inefficient to reach directly.
When using pooled funds, we apply the same ethical scrutiny as with directly held investments. We do not invest in funds that:
Focus on excluded activities (e.g. controversial weapons, adult entertainment, and gambling).
Derive 10% or more of aggregate value from activities contrary to our published tolerances.
Where indirect exposure arises, we seek to influence fund managers and always consider our ability to exit on ethical grounds.
Our tolerances in action
| Issue | EXCLUSIONS | INCLUSIONS | |
|---|---|---|---|
| High interest (Doorstep) lending | 1% |  | |
| Oil and Gas exploration, production, refining | 3% |  |  |
| Thermal coal exploration and production | 3% |  |  |
| Electricity production using fossil fuels | 30% |  |  |
| Conventional weapons and other armaments | 3% |  | |
| Controversial weapons | 0% | ||
| Non-weapon military components | 5% |  |  |
| Elective abortion facilities / manufacturers of sole purpose abortifacients | 0% | ||
| Distribution and sale of alcohol | 10% |  |  |
| Production of alcohol | 1% |  | |
| Distribution and sale of tobacco | 5% | ||
| Production of tobacco | 1% |  |  |
| Gambling | 3% |  |  |
| Adult entertainment | 1% |
