Sustainable Portfolio Management – Annual Report 2022

The positive impact our investments are making

22 April 2022

Unless otherwise stated, companies referenced in this report were companies held by our Sustainable Total Return Strategy as of 31 December 2021 and may no longer form part of our portfolios. Reference to specific companies in this report is not an opinion as to their present or future value and should not be considered investment advice or a personal recommendation. They’re included in this report to demonstrate the positive impact companies can have.

ESG overview

Here we provide a snapshot of our sustainable strategy’s exposure to key environmental, social and governance (ESG) factors, and how it compares to the wider market1.

ESG data helps us to assess the internal operational quality of a business, and its ability to mitigate risks to future cash flow that may arise from ESG factors. We integrate ESG analysis throughout our investment due diligence, and the data shown below is an output of that process.

  • Business Involvement
    Business involvment
  • International Norms Violations
  • Governance Risk
  • Our Top 5 Recyclers
  • Environmental Risk
  • Social Risk
  • Gender Pay Gap

Strategy impact is calculated by multiplying the company impact metric by the proportion of the company held by the strategy as of 31 December 2021, based on share count. This is a point-in-time assessment and we may no longer hold these companies within our portfolio. Strategy impact figures are not an opinion to each company’s present or future value. The company impact metric varies for each company shown - please see the accompanying company text for details.

The impact our companies are making

Our sustainable strategy invests in companies whose business activities support at least one of the UN Sustainable Development Goals (SDGs). Here, we highlight some of the ways our investee companies are making a real difference to a range of sustainability challenges. 

Business involvment

Schneider Electric

134m metric tons of CO2 saved by customers since 2018 through the IoT-enabled EcoStruxure architecture (equivalent to the emissions from 33.8 coal-fired power stations in one year).

Source: Schneider Electric, Sustainability Report 2020-2021 [PDF, 24.7MB]



70bn gallons of drinking water and wastewater treated daily using Trojan ultraviolet treatment systems, installed in more than 11,000 municipalities and 150,000 industrial facilities worldwide.

Source: Danaher, Sustainability Report 2021 [PDF, 14.5MB]


Johnson & Johnson

2bn doses of medicine donated across 50 countries to tackle soil-transmitted helminths, one of the most widespread neglected tropical diseases that disproportionately affects low income countries. J&J has been in the top 3 companies worldwide on the Access to Medicine Index for the past decade for its efforts in distributing medicines to low and middle-income countries.

Source: Johnson & Johnson, March 2022

Business involvment


780,000 women in the unbanked/under-banked population supported through the Sustainable Livelihood Initiative, which provides vocational training, financial literacy education, and access to credit facilities, to promote financial independence.

Source: HDFC Bank, Sustainability Report 2019-2020 [PDF, 22.5MB]



38m people provided with health and life insurance across Asia, helping to close the region’s estimated $83 trillion mortality protection gap, and helping families and communities to build financial resilience.

Source: AIA, Environmental, Social and Governance Report 2020 [PDF, 12.4MB]



200m people offered “accessible by design” features in Microsoft 365, including AI to assist blind and low-vision readers, and options to reduce eye strain and accommodate light sensitivity.

Source: Microsoft, April 2021

Business involvment


110,000km of water pipes are being monitored for leaks using Halma’s acoustic leak monitoring system, helping to conserve billions of litres of water each year.

Source: Halma, Annual Report and Accounts 2021



106,455 hectares of land saved in 2020 thanks to Croda’s agricultural biostimulants, adjuvants, and seed coatings. These products help increase agricultural yield and cropping intensity without soil degradation, biodiversity loss, or requiring land expansion through deforestation.

Source: Croda, Sustainability Report 2020



2m consumer engagements with the GetCovered programme, which helps individuals who lost employer-based health insurance during the pandemic.

Source: UnitedHealth, Sustainability Report 2020 [PDF, 6.2MB]

*Strategy refers to both Sustainable Multi-Asset Class and Sustainable Global Equity discretionary strategies managed by Barclays Private Bank

EssilorLuxottica case study: Eliminating poor vision

In this short case study, we explore how one investee company is supporting the UN’s bold and admirable target of providing eye care for all by 2030.

Uncorrected poor vision is the world’s most widespread unaddressed disability. It affects 1 in 3 people, 90% of whom live in the developing world. It is estimated that 2.7 billion people live with uncorrected poor vision due to a lack of affordability, access, awareness, and often, acceptance2.

For a child, an eye test can be the difference between inclusion or exclusion, between access to information, and seeking a livelihood or not, according to United Nations (UN) Ambassador Dr Aubrey Webson3.

In July 2021, the UN passed a resolution that sets a target for eye care for all by 2030, adding eye care to the Sustainable Development Goals. Countries are set to ensure full access to eye care services for their own populations, as well as to support global efforts. New expectations for financial institutions to provide targeted finances to go towards preventable sight loss have also been created4. This resolution aligns with EssilorLuxottica's ongoing efforts to tackle uncorrected poor vision in a generation.

Raising global awareness

Raising awareness of refractive error is one of the most critical actions that can be taken. EssilorLuxottica’s social impact fund, Vision For Life, has played a part in creating the See Now global campaign to increase awareness and drive public mobilisation on ending avoidable blindness and vision impairment. By 2020, the campaign had reached 32 million people5. The fund also founded Our Children’s Vision, which plans to donate more than 500,000 pairs of glasses and screen 50 million children worldwide for vision impairments5.

Its Ready2Clip range of glasses is designed to fit any face shape and enable on-the-spot customisation and delivery for each wearer, adapted to their own prescription. These are particularly beneficial for school children, as they reduce waiting times and costs for parents6. Furthermore, EssilorLuxottica has pledged to provide 200 million people living below the poverty line with free ophthalmic glasses5.

Since 2013, EssilorLuxottica’s 2.5 New Vision Generation business has been working to help support and extend the eye care infrastructure for refractive error. For example, Eye Mitra7 trains young and unemployed people to become primary vision care providers, as well as supporting them in setting up their own businesses to sell prescription glasses and sunglasses in their community. Today, this is the world’s largest rural optical network5.

EssilorLuxottica has committed to eliminating poor vision worldwide by 2050.

Sources and references

Key investment risks

ESG data risk: Some positions within the strategy may not have an ESG rating due to the nature of their asset class (e.g. government bonds, gold, hedging derivatives). Should a position not be covered by MSCI (or an equivalent provider) due to lack of coverage, the Portfolio Manager will determine the position’s equivalent rating.

Market risk: The possibility for an investor to experience losses due to factors that affect the overall performance of the financial markets. Market risk, also called “systematic risk”, cannot be eliminated through diversification, though it can be hedged against. Sources of market risk include major natural disasters, recessions, political turmoil and geopolitical tension.

Liquidity risk: The risk stemming from the lack of marketability of an investment that cannot be bought or sold quickly enough to prevent or minimise a loss.

Derivatives exposure: The use of these instruments can, under certain circumstances, increase the volatility and risk profile of the strategy beyond that expected of a strategy that only invests in equities. The strategy may also be exposed to the risk that the company issuing the derivative may not honour their obligations which could lead to losses arising.

Currency risk: An investor will be exposed to currency fluctuations between their domestic currency, a fund’s holding currency, and the local currency of an investment.

Interest rate risk: An investor will be exposed to interest rate risk. Changes in interest rates will impact the performance and/or value of instruments. Interest rates tend to change suddenly and unpredictably.

Inflation: Inflation will reduce the real value of your investments in the future.

Taxation and tax relief: Levels of taxation and tax relief are subject to change.

Returns are not guaranteed: Past performance is not an indication of future performance. The value of investments, and any income, can fall as well as rise, so you could get back less than you invested. Neither capital nor income is guaranteed.

Related articles


Sustainable Portfolio Management

In this year’s report, we focus on some of the exciting new technologies that could meaningfully improve sustainability outcomes, from precision manufacturing and measurement, to genomic sequencing, to digital infrastructure. And we’re delighted to feature an article from Sir David King on the strategies urgently needed to ensure climate repair.

For Accredited Investors in Singapore

This advertisement has not been reviewed by the Monetary Authority of Singapore.

Please note that the sustainable strategies referenced in this report are not available to Private Clients in India. For more information, please contact your local office, or visit our Important information page.

The communication is:

(i) Has been prepared by Barclays Private Bank (Barclays) and is provided for information purposes only and is subject to change.  It is indicative only and not binding.  References to Barclays means any entity within the Barclays Group of companies, where “Barclays Group” means Barclays and its affiliates, subsidiaries and undertakings.

(ii) Is not research nor a product of the Barclays Research department. Any views expressed in this communication may differ from those of the Barclays Research department. All opinions and estimates are given as of the date of this communication and are subject to change. Barclays is not obliged to inform recipients of this communication of any change to such opinions or estimates.

(iii) Is general in nature and does not take into account any specific investment objectives, financial situation or particular needs of any particular person.

(iv) Does not constitute an offer, an invitation or a recommendation to enter into any product or service and does not constitute investment advice, solicitation to buy or sell securities and/or a personal recommendation.  Any entry into any product or service requires Barclays’ subsequent formal agreement which will be subject to internal approvals and execution of binding documents.

(v) Is confidential and is for the benefit of the recipient. No part of it may be reproduced, distributed or transmitted without the prior written permission of Barclays.

(vi) Has not been reviewed or approved by any regulatory authority.

(vii) This communication is a marketing communication for the purposes of the relevant conduct of business requirements applicable to the communication.

Any past or simulated past performance including back-testing, modelling or scenario analysis, or future projections contained in this communication is no indication as to future performance. No representation is made as to the accuracy of the assumptions made in this communication, or completeness of, any modelling, scenario analysis or back-testing. The value of any investment may also fluctuate as a result of market changes.

Barclays is a full service bank.  In the normal course of offering products and services, Barclays may act in several capacities and simultaneously, giving rise to potential conflicts of interest which may impact the performance of the products. 

Where information in this communication has been obtained from third party sources, we believe those sources to be reliable but we do not guarantee the information’s accuracy and you should note that it may be incomplete or condensed.

Neither Barclays nor any of its directors, officers, employees, representatives or agents, accepts any liability whatsoever for any direct, indirect or consequential losses (in contract, tort or otherwise) arising from the use of this communication or its contents or reliance on the information contained herein, except to the extent this would be prohibited by law or regulation. This communication is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful for them to access. Law or regulation in certain countries may restrict the manner of distribution of this communication and the availability of the products and services, and persons who come into possession of this publication are required to inform themselves of and observe such restrictions.

You have sole responsibility for the management of your tax and legal affairs including making any applicable filings and payments and complying with any applicable laws and regulations. We have not and will not provide you with tax or legal advice and recommend that you obtain independent tax and legal advice tailored to your individual circumstances.

This report contains certain information (the “Information”) sourced from MSCI ESG Research LLC, or its affiliates or information providers (the “ESG Parties”). The Information may only be used for your internal or personal use, may not be reproduced or disseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices.

Although they obtain information from sources they consider reliable, none of the ESG Parties warrants or guarantees the originality, accuracy and/or completeness, of any data herein and expressly disclaim all express or implied warranties, including those of merchantability and fitness for a particular purpose.

None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such, nor should it be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the ESG Parties shall have any liability for any errors or omissions in connection with any data herein, or any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages.

For United Arab Emirates (Excluding Dubai International Financial Centre and Abu Dhabi Global Market) Residents Only

This document and the information contained herein, does not constitute, and is not intended to constitute, a public offer of securities in the United Arab Emirates and accordingly should not be construed as such. The Products are only being offered to a limited number of investors in the UAE who (a) are willing and able to conduct an independent investigation of the risks involved in an investment in such Products, and (b) upon their specific request.  The Products do not relate to UAE domiciled securities and have not been approved by or licensed or registered with the UAE Central Bank, the Securities and Commodities Authority or any other relevant licensing authorities or governmental agencies in the UAE.  The document is for the use of the named addressee only, who has specifically requested it without a promotion effected by Barclays and should not be given or shown to any other person (other than employees, agents or consultants in connection with the addressee's consideration thereof).