The Ethical Target Date Fund is invested using a Target Date Fund. These funds are invested in equity funds which track the FTSE4Good indices, MSCI World SRI indices and UK Government bonds (Gilts).
These indices consist of companies that meet globally-recognised standards on corporate social responsibility. These companies must be able to demonstrate that they meet a broad range of environmental, social and governance (ESG) criteria through their approach to issues such as climate change, water, biodiversity, labour standards, tax transparency and anti-corruption. The funds also exclude some sectors like tobacco and defence.