ELM Responsible Investments Global Fund Impact Report

13 November 2025

Introduction

ELM Responsible Investments is at the forefront of aligning investor capital with positive environmental and societal impact. Our core philosophy is that innovative companies driving positive change can also yield strong financial returns. This report aims to provide a comprehensive overview of the fund's targets and the impact it has delivered.

The Fund uses the Impact Management Project’s 5 Dimensions of Impact and classification system to measure and quantify the level of impact a company has on its stakeholders. The Fund also employs a robust investment analysis process to identify companies that possess superior future return potential. By combining the two distinct processes, the Fund aims to invest in impactful companies that are also well poised to deliver strong future returns.

By following our process, we have identified 3 Investment Themes for the Global Fund: Health and Education, Environment and Climate, and Digitization and Future Technology. These themes align closely with the United Nations Sustainable Development Goals, reflecting a commitment to a more equitable and sustainable future. Within these themes, we have identified 10 Key Areas of Investment. These are more specific and targeted investment opportunities.

A closer look at some of the Fund's holdings illustrates the synergy between financial performance and positive impact. Tesla, a key holding of the Fund, has significantly contributed to reducing greenhouse gas emissions through its electric vehicles (EVs). Tesla's commitment to recycling batteries, reducing city pollution, and enhancing vehicle safety underscores its contribution to environmental and societal betterment.

Another noteworthy holding, Orsted, exemplifies a commitment to green energy, crucial for reducing carbon emissions and addressing global challenges such as social injustice and biodiversity loss. Orsted’s approach to sustainable energy focuses on coexistence with nature and communities, aiming to give back more to society and nature than what it takes.

Similarly, Novozymes, a leader in sustainability, has contributed to the United Nations Sustainable Development Goals through its biosolutions. The company's milestones in sustainability, including its commitment to gender equality, circular production, and climate targets, illustrate a profound commitment to a sustainable future.

This report aims to shed light on the significant environmental and social impact these investments have generated. We also appreciate that despite the positive change our companies drive, every company has flaws, so we will also discuss the opportunities for improvement for our holdings and how we have engaged with our companies throughout the year.

Financial returns and positive global impact are not mutually exclusive but can be symbiotically achieved.

Our Philosophy

We see ourselves as having two objectives:

Upholding our fiduciary duty to our clients, and to manage their capital responsibly for long-term returns.
Upholding an investment approach that considers all stakeholders – customers, suppliers, employees, environment, society – and investing to facilitate the transition to a more sustainable future.

We are nearing a tipping point on many global issues such as climate change and inequality. While government policies have a major impact on these issues, companies – particularly large and publicly listed ones – have a wide-reaching impact on society, and have the ability to shape the sustainability landscape, both positively and negatively.

Our goal is to help steer the world towards a more sustainable future by investing in companies that are facilitating this transition. We support a new investment framework, one that doesn’t prioritise short-term profits, but rather considers all stakeholders including customers, staff, the environment, and society, as well as shareholders.

We believe in generating financial returns and rewarding entrepreneurs by investing in companies working toward a sustainable future through the products and services they sell, their investments, and their corporate policies. We identify companies making progress on the United Nations Sustainable Development Goals and support their path to growth as they expand their sustainable business operations.

At ELM Responsible Investments, we seek to invest in companies making a positive impact (now and for the future) that also represent excellent long-term investment opportunities.

Our Sustainability Framework in Detail

We take a holistic view of how companies impact all stakeholders.

We first use a quantitative screening tool to analyse both the positive and negative contributions companies are making to the UN SDGs. A quantitative screen allows us to analyse vast amounts of data in a short timeframe, but we lose the qualitative context associated with the data. Guided by quantitative results, we then conduct a more detailed analysis, focusing on the targets and indicators of the UN SDGs and Impact Management Project's classification system.

Following the Impact Management Project’s classification system, we strive to classify each company as:

Causes Harm
Acts to Avoid Harm (A): Minimum obligations and requirements a company has to all stakeholders including their customers, staff, the environment and shareholders are met. These companies mitigate operational and reputation risk, but do not contribute to positive change. These companies are usually managing their ESG risk.
Benefits Stakeholders (B): These are companies that are actively benefiting stakeholders in addition to avoiding harm. Such companies may be offering an attractive working environment for staff, or converting their energy usage to renewable energy. B companies are generally motivated by financial out-performance over the long term, and often referred to as pursuing ESG opportunities.
Contributes to Solutions (C): These are companies that are contributing to solutions using their full capabilities. They tend to focus on finding solutions to pressing problems impacting the most under-served individuals.

We classify each company by assessing the experience or effect stakeholders (consumers, employees, suppliers, the environment and broader society) have had and will have by engaging with the company, or as a consequence of the company. We determine whether that experience or effect is directly contributing positively or negatively to the UN SDGs, and attempt to quantify that contribution. We then score the company along the Impact Management Project’s classification system.

Ideally we would invest exclusively in C companies making the biggest contribution to the UN SDGs. These companies, however, often represent higher investment risk as they tend to operate in difficult geographies addressing complex issues. We also need to ensure investment returns are acceptable, and build a balanced portfolio to deliver on our fiduciary duty to our clients. We construct profitable portfolios by investing primarily in B and C companies, as well as A companies, without the need to invest in companies that cause harm.

Key Areas of Investment and Holdings

Electric vehicles (EVs) are gaining unprecedented momentum as a sustainable and environmentally friendly alternative to traditional internal combustion engine (ICE) vehicles. The importance of EVs in the larger context of sustainability and environmental protection becomes clear when considering the role of transportation in global greenhouse gas (GHG) emissions. In 2022, transportation accounted for around 31% of total U.S. GHG emissions, making it a significant contributor to climate change. Globally, transport generates around 16% of all GHG emissions, underlining the necessity for a shift to more sustainable forms of transportation.

The decarbonization of the transportation industry is crucial in the global effort to reduce GHG emissions and combat climate change. For automobiles, despite ongoing advances in fuel efficiency, the pathway to significant decarbonization lies in the accelerated adoption of electric vehicles. This shift is driven not only by regulatory pressures to reduce tailpipe emissions but also by increasing consumer demand. Global automakers are responding by ramping up EV production and sales. The transition to EVs is supported by the development of technologies that reduce or eliminate emissions throughout the vehicle’s lifecycle, from production to decommissioning. This holistic approach is integral to meeting the Paris Agreement's science-based emissions reduction targets.

Electric cars are witnessing exponential growth in sales, demonstrating their rising importance in the global market. In 2024, 22% of all new cars sold were electric, with continued growth year on year. This growth is projected to continue, with electric cars expected to account for more than 25% of total car sales in 2025. The shift to electric cars is expected to have a substantial impact on oil demand and GHG emissions. By 2030, the use of electric cars is projected to displace over 5 million barrels of oil per day and avoid emissions of approximately 700 Mt CO2-equivalents.

The decarbonization of the aviation industry, while more challenging, is equally crucial. Commercial aviation accounted for about 2.5% of global CO2 emissions in 2024. Efforts in this sector are focused on reducing fuel-related emissions, primarily through the use of sustainable aviation fuels (SAFs), and developing zero-emission propulsion technologies such as battery-electric and hydrogen-based systems. Unlike automobiles, a larger proportion of an aircraft’s lifetime emissions comes from fuel use, including sourcing and combustion, rather than manufacturing and maintenance.

In summary, the transition to electric vehicles in both the automotive and aviation sectors is a vital component of global efforts to decarbonize transportation and reduce GHG emissions. This transition is driven by technological advancements, consumer demand, regulatory pressures, and an increasing recognition of the environmental and economic benefits of electric mobility. As the world moves towards more sustainable modes of transportation, the role of electric vehicles in achieving climate goals becomes increasingly significant.

Climate and Environment - Electric Vehicles

Our Investments

Description:
Tesla remains a prominent player in clean mobility and energy, making measurable contributions to environmental sustainability. Through the displacement of internal combustion engines through its electric vehicles, scaling of energy storage systems, and solar roof product, Tesla positions the global economy to more easily decarbonise. The company’s strategy aligns with the fund’s emphasis on investing in impactful, responsible investments.
Impact:
Tesla continues to push forward the transition to sustainable energy.
In Q3 2025, Tesla delivered 497,099 vehicles, a new record for the company. In the same quarter, it deployed 12.5 GWh of energy storage products, setting another record in its energy business. Throughout 2024, Tesla’s annual energy storage deployments more than doubled compared to 2023, reaching about 31.4 GWh. According to the company's 2024 Impact Report, customers avoided emitting over 32 million tonnes of CO₂e by using its vehicles, solar panels, and storage products.
Tesla also continues to build out its sustainability credentials in its supply chain through policies on supplier audits and sourcing of high-risk materials. Its broader influence has helped accelerate industry-wide shifts toward electrification and clean energy solutions.
Engagement Topics:
Environmental and social issues in the company’s supply chain, when it comes to sourcing critical minerals, CEO Elon Musk’s resistance to oversight, public statements on social media and poor governance. We maintain active engagement with Tesla via email, and continue to do so.
Description:
Joby Aviation is an innovative aerospace company focused on revolutionising mobility with electric vertical take-off and landing (eVTOL) aircraft. They aim to transform urban transportation, offering a sustainable, efficient alternative to conventional ground travel, with a strong commitment to reducing urban congestion and carbon emissions. Beyond its zero-emission aircraft, Joby is building toward operational systems and infrastructure aligned with sustainability and safety.
Impact:
In September 2025, Joby announced participation in the White House eVTOL Integration Pilot Program (eIPP), enabling mature eVTOL designs to begin limited operations ahead of full FAA type certification. Its production ramp-up is underway, their current facility is currently capable of producing 24 aircraft per year. This is expected to double with their recent expansions capable of doubling current production. A newly acquired facility in Ohio is eventually scheduled to support large-scale manufacturing of up to 500 aircraft annually.
On the flight test front, Joby’s test aircraft have achieved airworthiness certification and have undergone piloted full-transition flights (vertical to wing-borne cruise to vertical), a critical validation step in its path toward commercial readiness. Joby recently delivered its first production aircraft to Dubai, where it secured an exclusive six-year operating agreement to prepare for commercial air taxi services early in 2026. In August 2025, Joby agreed to acquire Blade Air Mobility’s passenger air taxi business which transported 50,000 people in 2024. This gives Joby immediate access to markets, customers, and operational infrastructure in New York City and Southern Europe.

The imperative of transitioning to renewable energy sources is underscored by the escalating crisis of climate change and nature loss. The link between these environmental issues is well-established. According to the WWF's Living Planet Report 2024, the impact of human activities on nature, primarily through habitat destruction for agriculture, timber, housing, and resource extraction, has been compounded since the late 20th century by the emerging threat of climate change. They found that between 1970 and 2020, vertebrate wildlife populations decreased by 73% in surveyed populations. It also found that rising sea temperatures and ecosystem degradation will likely cause 70 - 90% of coral reefs to die. The report goes on to document the loss of the Chinstrap penguin, which saw a 61% decline between 1980 and 2019 and includes many other similar case studies.

The intertwined nature of climate change and biodiversity loss is exemplified by the concept of 'threat multiplier,' where climate change exacerbates existing environmental threats, leading to more severe impacts than either factor alone. This has prompted an urgent call for nature-based solutions that address both climate change and biodiversity conservation simultaneously.

The role of the fossil fuel industry in exacerbating climate change cannot be overstated. The burning of fossil fuels, industrial production, and land use changes are the primary sources of carbon dioxide (CO2), the most dominant greenhouse gas. Other significant greenhouse gases include methane, nitrous oxide, and fluorinated gases, all contributing to global warming. In the United States alone, approximately 34% of global warming emissions originate from the energy sector, predominantly from burning coal and natural gas.

In contrast, renewable energy sources offer a sustainable and low-emission alternative. These sources produce minimal global warming emissions, even when considering the entire life cycle of the technology – from manufacturing to decommissioning. Transitioning to renewable energy can drastically reduce greenhouse gas emissions. The International Energy Agency believes that the world will need 1,200 GW of renewable capacity installed each year by 2030 to achieve net zero by 2050. In 2024, this reached around 700 GW, meaning that, to keep global warming below catastrophic levels, more investment is needed.

In summary, the importance of renewable energy in mitigating nature loss and climate change is evident. As the world grapples with these intertwined crises, a shift towards renewable energy sources emerges as a critical pathway to a sustainable planet. This transition promises not only to curb greenhouse gas emissions but also to play a vital role in preserving biodiversity and the natural systems upon which human survival depends.

Climate and Environment - Environment and Renewable Energy

Description:
Ørsted, named after Danish scientist Hans Christian Ørsted, is a global leader in renewable energy. Originating in Denmark, the company was once a major fossil fuel company but is transitioning renewables with a focus on wind power. They aim to be carbon neutral by 2040. It's known for developing offshore wind farms and investing in green energy solutions for a sustainable future.
Impact:
Ørsted has made significant progress in renewable energy deployment and sustainability. By Q2 2025, the company increased its installed renewable capacity to 18.5 GW. They currently aim to construct an additional 8.1 GW of offshore wind power by 2027. In 2024, they closed their last coal-fired plant so as to reach their goal of a 98% reduction in scope 1 and 2 emissions by 2025. They also have a 2040 net-zero goal for scope 1, 2 and 3 emissions.
Ørsted considers its biodiversity impacts and aims for a net-positive biodiversity impact on all new renewable energy projects commissioned by 2030. They also plan to open a carbon capture and storage facility in 2026, which will remove 430,000 tons of CO₂ annually. The facilities are built on a straw-fired power plant and a woodchip-fired power plant and so will reduce CO₂ concentrations in the atmosphere.
Engagement Topics:
ELM is in contact with Ørsted over how their restructuring will affect their sustainability goals. These goals are critical to maintaining Ørsted’s leadership in sustainability in the energy field.
Description:
Nibe Industrier is a Swedish multinational firm specialising in sustainable energy solutions. Renowned for its heating technology products, including heat pumps, boilers, and water heaters, Nibe focuses on innovative, energy-efficient solutions to reduce environmental impact, catering to both residential and commercial markets globally with a commitment to eco-friendliness and technological advancement.
Impact:
Nibe has a 2050 carbon neutral goal and aims to reduce its direct and indirect CO₂ emissions by 65% by 2030 compared with a 2019 baseline. Nibe also targets that by the end of 2026, 70% of their products sold will be classified as part of the low carbon economy. Despite a reduction in heat pump sales across Europe, Nibe has launched new heat pump products. They expect increased sales in coming years, which will help to reduce emissions through its vastly improved efficiency over traditional heating solutions.
In Heerlen, Netherlands, Nibe is involved in transitioning an entire city from fossil-based systems to a fossil-free, heat pump-based system. This large-scale project exemplifies Nibe's innovative approach to sustainable energy solutions.
Engagement Topics:
We have engaged with Nibe on the strength and ambition of its climate commitments. As an industry leader in sustainable heating and energy systems, we believe Nibe is well-positioned to accelerate its transition timeline beyond its current 2050 target. Strengthening these commitments would reinforce the company’s standing as a sustainability leader and demonstrate greater alignment with global decarbonisation pathways.
Description:
Vestas, headquartered in Denmark, is a global leader in manufacturing wind turbines. Pioneering in the wind energy sector, Vestas designs, constructs, and services wind turbines worldwide. With a focus on sustainable energy solutions, the company plays a critical role in the transition towards a greener, renewable energy future.
Impact:
By the end of June 2025, Vestas had installed 193 GW of wind turbines across 88 countries. In the 12 months up until Q2 2025, they installed 13.9 GW worth of wind turbines. This avoided 480 million tonnes of CO₂e. They also had a backlog of 29 GW to install by Q2 2025. Vestas reported a recycling rate of 68% and has a zero-waste goal by 2040. They have also launched a low emission turbine tower alternative that uses steel produced with lower emission techniques. Vestas is committed to our sustainable future and are providing the mechanism to reach it, cheap renewable power.
Engagement Topics:
We have contacted Vestas concerning their recycling rate and impact on biodiversity. A 68% recycling rate would still result in thousands of tonnes worth of landfill. We are also requesting that their zero waste ambition become a firm target. Further, we are asking that the company introduce strong biodiversity goals. Given the importance of biodiversity preservation globally, Vestas has the potential to lead the industry by example.
Description:
Novonesis (previously Novozymes) is a global biotechnology company specialising in the research, development, and production of industrial enzymes, microorganisms, and biopharmaceutical ingredients. Their innovations are used in various industries, including agriculture, bioenergy, food and beverage, household care, and pharmaceuticals, focusing on sustainability and efficiency in production processes.
Impact:
Novonesis reports that 83% of its sales are aligned with at least one of the six UN Sustainable Development Goals. The company achieved a 63% reduction in its combined Scope 1 and 2 greenhouse gas (GHG) emissions in 2024 compared to 2018. By 2025, it aims to purchase 100% renewable electricity, and by 2030, it targets a 75% reduction in Scope 1 and 2 emissions relative to 2018 levels. They have also set a long-term goal to reduce their total Scope 1, 2, and 3 emissions by 90% by 2050, then use drawdown technologies to fill the gap to net zero.
On the waste side, Novonensis has committed to achieving zero waste by 2030, applying this goal to sites with significant environmental impacts. Its biosolutions have already saved more than 60 million tons of CO2e through the use of their biofuels. The company also produces enzyme-based detergents that reduce the need for surfactants, thereby lowering reliance on potentially harmful chemicals.
In 2022, their biosolutions played a critical role in mitigating carbon emissions, with innovations such as HiPhorius™, a fourth-generation phytase that reduces phosphorus use in animal feed, significantly lowering environmental impact. Recognised for their efforts, they received a Platinum Medal from Ecovadis in 2023, ranked on CDP’s Climate Change A List, achieved a AAA rating in MSCI ESG Ratings, and became a constituent of the FTSE4Good Index Series.
Description:
TOMRA is a Norwegian company that specialises in sensor-based technologies for resource optimisation. They design, manufacture, and sell reverse vending machines for automated collection of used beverage containers, as well as advanced collection and sorting systems for various industries, including food processing, recycling, and mining.
Impact:
TOMRA's solutions have a significant impact on promoting the circular economy and sustainable resource management. Their reverse vending machines collect over 40 billion empty beverage containers annually, significantly increasing recycling rates. TOMRA's sensor-based sorting technologies also help to improve recycling efficiency, leading to higher quality recycled materials and reduced contamination of recycling streams. In the food industry, their solutions help minimise food loss and maximise food safety throughout the production and supply chain.
TOMRA aim to reduce Scope 1 and 2 emissions by 55% by 2033 and Scope 3 emissions by 62%. They also have a net-zero emissions target by 2050. TOMRA gather data on how their products are used so they are able to reduce their energy consumption. As 87.5% of TOMRAs' full scope emissions come from the energy used to run the machines they sell, this innovation will be critical in reducing their emissions. The company is also planning on opening two new plastic recycling plants in Q4 2025 and Q1 2026. Together, these plants will divert 170,000 tonnes of mixed plastic waste from landfill or incineration.
Description:
Ecolab is a global leader in water, hygiene, and infection prevention solutions and services. Ecolab's offerings include water treatment, purification, cleaning, and hygiene technologies tailored to meet the specific needs of their customers in more than 170 countries and 40 industries; including food production, restaurants, hotels, hospitals, paper mills, power generation, manufacturing plants, along with many others.
Impact:
Ecolab's innovations contribute significantly towards a more sustainable future. In 2024, Ecolab helped conserve 226 billion gallons of water, equivalent to the drinking water needs of 781 million people. Their products and services also helped avoid 4.6 million tonnes of greenhouse gas emissions. They also had a 33% reduction in their Scope 1 and 2 emissions compared to 2018.
Description:
Founded in 1894 as a tea producer in Sri Lanka, Halma has evolved to become the owner of a group of safety and detection equipment producers. The company divides their holdings into the categories of Safety, Environmental & Analysis, and Healthcare.
Impact:
As of 2025, the group have reached 86% renewable electricity consumption. The group has far exceeded their Scope 1 and 2 emission goals, having reduced emissions by 64% from a 2020 baseline. It aims to reach net zero by 2040 for Scope 1 and 2 emissions and 2050 for Scope 3.
Halma owns many companies that produce sustainable outcomes, such as Deep Trekker. Deep Trekker produces remotely operated vehicles that are being used to monitor underwater environments. This has been used by the non-profit organisation The Atlantic Healthy Oceans Initiative to research difficult-to-access marine habitats. Another company in the group is Fluid Conservation Systems. It makes monitoring equipment that saves billions of litres of water every year through listening for leaks and alerting operators.
Engagement Topics:
Halma’s progress with their net-zero goals, which are already producing excellent results, but ELM is in communication with the company to push for further target-setting. ELM hopes Halma can become an example to other companies, which would amplify their impact. Halma is also being asked to introduce recycling targets for the products its companies produce.

Our Investments

The impact of property and infrastructure on climate change is a critical topic in today's environmental discourse. Nearly 40% of global carbon dioxide emissions are attributed to the real estate sector, with about 70% of these emissions resulting from building operations and the remaining 30% from construction. This significant contribution to greenhouse gases underscores the vital role that sustainable property development and infrastructure play in mitigating climate change.

Adopting sustainable building practices is a starting point for property owners to reduce climate risk exposure. Green buildings not only advance environmental investment strategies but also offer tangible benefits such as improved investment fundamentals. Sustainable properties are more attractive to tenants, command premium rents, and can result in a capital value premium of up to 20% in some markets. This demonstrates how responsible property management and development can positively impact both the environment and the economy.

The United Nations Intergovernmental Panel on Climate Change (IPCC) reports that efficiency policies in buildings and constructions can potentially reduce greenhouse gas emissions by up to 90% in developed countries and up to 80% in developing countries. We believe that the real estate and infrastructure sectors hold significant responsibility and opportunity in the fight against climate change. Sustainable practices in these sectors are not only environmentally necessary but also economically beneficial.

Climate and Environment - Property and Infrastructure

Description:
Brookfield Asset Management is a global alternative asset manager, specialising in real estate, renewable power, infrastructure, and private equity. It focuses on long-term investments and sustainability.
Impact:
Brookfield Asset Management, in 2024, achieved a global renewable power generation and storage capacity of 46,000 MW across its investments and owned assets. They also target net zero emissions by 2050, not only for their own operations, but for the managed investments they’re able to influence. Committed to sustainability, they plan to power their entire U.S. office portfolio with clean energy by 2026. Their renewable energy operations span five continents, significantly contributing to global decarbonisation efforts.
Engagement Topics:
Brookfield Asset Management continued investment in fossil fuel companies such as Duke Energy Florida, in which it took a 20% stake in Q2 2025. As such, ELM has been in contact with Brookfield over this and other holdings. We are requesting that they provide plans as to how they will be transitioning these companies to renewable technologies.

Our Investments

Fintech and digital marketplace innovations are reshaping the landscape of financial inclusion, particularly for those previously excluded from the formal financial system. This transformation is crucial for social inclusion, as financial inclusion is closely linked to economic growth and poverty reduction. Historically, economists have recognised the positive relationship between financial development and economic growth. King and Levine, in their 1993 study, argued that financial development is a good indicator of long-term growth, highlighting how access to financial institutions in developing countries has significantly impacted their growth. Joseph Schumpeter, as early as 1911, posited that well-functioning banks spur technological innovation by funding entrepreneurs, mobilising savings, allocating resources efficiently, and improving risk management, all contributing to innovation and entrepreneurship.

There is also a strong negative correlation between financial services access and poverty. Financial inclusion is seen as a dynamic tool for attaining macroeconomic stability, sustainable growth, poverty reduction, and income equality. This inclusion is especially pivotal for marginalised segments like rural dwellers, women, and low-income families who benefit from basic financial services like savings, borrowing, payment, and insurance. Studies have shown that economies with higher financial inclusion significantly reduce poverty rates and income inequality in developing countries.

However, traditional financial services companies, with their high cost base, have been unable to service many parts of the economy, especially in regions with a significant unbanked population. For instance, as of 2021, an estimated 4.5 percent of U.S. households (approximately 5.9 million) were unbanked. In Brazil, around 34 million people do not have access to banking services, highlighting the challenge in these regions.

Fintech, digital wallets and marketplaces, leveraging technology, offer a solution to this challenge. They provide access to financial services for those previously excluded, thanks to their lower operational costs and the ability to leverage mobile and internet technologies. This has been evident in the increasing use of mobile banking, which rose sharply from 15.1 percent in 2017 to 48.3 percent in 2023 in the U.S. This trend points to a broader acceptance and reliance on digital financial services, which can bridge the gap for the unbanked and underbanked populations.

In conclusion, the emergence of fintech, digital wallets and digital marketplaces is playing a crucial role in advancing financial inclusion, thereby contributing to social inclusion, economic development, and the reduction of poverty and income inequality. This shift is particularly significant in countries like Brazil and the U.S., where a substantial portion of the population remains unbanked. As these digital financial tools continue to evolve and become more accessible, they hold the promise of further integrating previously excluded groups into the financial system, thereby enhancing overall economic well-being and social equity.

Digitisation and Future Technology - Fintech and Marketplace

As every sector of the economy modernises and embraces artificial intelligence and other future technologies to unlock productivity and innovation, enabling technologies, such as semiconductors, are playing an increasingly vital role in our economies. More importantly, there are certain sectors like electric vehicles (EV), renewable energy and healthcare that are leveraging these future technologies to help solve many of the greatest challenges we face today.

Semiconductors are fundamental to the efficiency and safety of EVs and enhance their performance, particularly in battery technology. Innovations in semiconductors enable EV batteries to operate at higher voltages, boosting their efficiency and lifespan. This advancement is exemplified by Tesla's Model 3, which leverages semiconductor technology to offer an efficient EV at an accessible price point.

Semiconductors are also indispensable in enabling clean, renewable energy sources and enhancing energy efficiency. They are the basis for solar electric energy systems and are used to condition power from solar arrays and wind turbines. Additionally, semiconductors contribute to making the electric grid more intelligent, facilitating the integration of renewable and distributed sources of power into the grid. This intelligence is key for utilities to manage power demand effectively and integrate renewable energy sources seamlessly.

The healthcare sector also benefits significantly from semiconductor technology. The market for semiconductors in healthcare is estimated at USD 8.32 billion and is projected to reach USD 14.28 billion by 2030. Semiconductor components are critical in various healthcare applications, including medical imaging, clinical diagnostics, therapy, and portable home healthcare devices.

The use of artificial intelligence (AI) in healthcare, powered by semiconductors, is another important area. Companies like ProMedicus are using AI to improve patient diagnostics. This application of AI in healthcare relies heavily on advanced semiconductor technology for data processing and analysis, leading to more accurate and efficient healthcare delivery.

In summary, the significance of semiconductors in sustainability and environmental protection cannot be overstated. They are essential in the evolution and effectiveness of electric vehicles, the development of renewable energy, and the advancement of healthcare through AI and other technologies. Semiconductors and future technology enablers serve as a bridge between the current state of the world and a more sustainable and efficient future, addressing global challenges such as climate change and healthcare advancement.

Description:
Mercado Libre is a leading e-commerce platform in Latin America, offering a vast array of services including marketplace, payments, advertising, and e-building solutions. It connects millions of buyers and sellers across the region, fostering an accessible and secure online shopping and selling experience.
Impact:
In 2022, the company facilitated access to credit for over 11 million people and businesses, many of whom were previously underserved by traditional financial institutions. In 2024, they delivered over 1.7 million parcels and expanded their electric fleet to 3,600 vehicles. On the environmental front, Mercado Libre has committed to powering 100% of its operations with renewable energy by 2030. By 2024, they had already achieved 43.8% renewable energy use across their operations. Mercado Libre's impact extends to social initiatives, including a $10 million investment in their Regenera America program, which supports environmental conservation projects across Latin America. Through this program, they have now conserved over 15,000 hectares of forests throughout Brazil and Mexico. Through its platform, Mercado Libre has empowered over 500,000 SMEs to grow their businesses online, contributing to economic development across the region.
Description:
Block, formerly known as Square, is a technology company specialising in financial services and mobile payment solutions. It provides software and hardware solutions to merchants to conduct business. The company, through Cash App, also provides financial services digitally to individuals.
Impact:
In Q2 2025, Cash App facilitated $218 billion in peer-to-peer transacting volume, demonstrating its wide-reaching impact on financial management. Through its Square ecosystem, Block enabled millions of sellers to process payments, manage their businesses, and access capital, with gross payment volume reaching $201 billion in 2023. The company's commitment to financial inclusion is evident in its efforts to make financial services more accessible. Cash App's banking services, including direct deposit and the Cash Card, have provided banking alternatives to underserved populations.
Block has an ambitious target to reach net-zero emissions by 2030. In 2023, they paid for the removal of 100,000 tonnes of CO2e to help reach this goal, as well as reducing their total emissions.
Engagement Topics:
ELM has engaged with Block on its approach to responsible innovation. While the company’s mission to democratise financial services is commendable, engagement has focused on ensuring that its financial products remain appropriate for its customers.

Our Investments

Digitisation and Future Technology - Future Technology

Description:
Nvidia, a leading technology company, specialises in developing graphics processing units (GPUs). Their GPUs are more energy-efficient than traditional central processing units (CPUs), offering superior performance for complex computations. This efficiency is crucial for advancing future technologies, where high processing power with lower energy consumption is essential. GPUs are especially well-suited to train AI models.
Impact:
The company's impact on society is profound, with its AI technologies being used to address critical challenges in healthcare, climate science, and more. For instance, NVIDIA's AI platforms have been instrumental in accelerating drug discovery and improving diagnostic accuracy in medical imaging. Nvidia has also accelerated AI in healthcare settings, working with Medtronic to develop an AI enhanced colonoscopy tool that detects 50% more lesions to deliver better patient outcomes. NVIDIA's DRIVE platform is also pushing the boundaries of autonomous driving, contributing to safer and more efficient transportation systems. The company has also created a model of Earth’s climate, allowing scientists to more accurately predict the effects of climate change.
NVIDIA's data centres and offices are powered by renewable energy, having met their target to achieve 100% renewable energy usage by 2025. Nvidia’s chips use 30% less power than CPUs in data centre networking and infrastructure functions. Accelerated computing, which NVIDIA invented over 20 years ago, is now considered to be sustainable and a key pillar to achieve net zero. The company also has comprehensive self-reporting on topics ranging from electricity sourcing to gender pay gaps.
Engagement Topics:
We are in communication with Nvidia over the end-of-life management of its products. The volume of electronic waste generated globally is staggering, and we believe Nvidia can be a leader in transitioning the industry to more sustainable products.
Description:
ASML, a Dutch technology company, is pivotal to the modern economy as a leading supplier of photolithography systems for semiconductor manufacturing. Their advanced machines, essential for producing integrated circuits, are integral to the fabrication of microchips found in a myriad of modern electronic devices. By enabling the production of smaller, more powerful, and energy-efficient semiconductors, ASML plays a crucial role in the advancement of technology across various industries, including computing, telecommunications, healthcare, and renewable energy.
Impact:
ASML has made significant contributions to the semiconductor industry and global technological advancements. The company is the only producer of EUV systems, a critical technology for producing the most advanced chips used in high-performance computing and AI applications. These systems have enabled semiconductor manufacturers to achieve higher productivity and lower energy consumption, supporting the development of more efficient and powerful electronic devices.

ASML are also one of the most ambitious movers in the net-zero space. They are set to achieve net zero emissions in their operations by 2025. Their 2024 Annual Report contains plans for how they will achieve net zero across Scope 1 and 2 emissions by 2030 and 2040 for Scope 3. To this end, they aim to consume half as much energy to achieve these goals, which is the best approach when reducing impacts. Starting in 2025, they are also going to be offsetting employee commuting and business travel.
Engagement Topics:
While reducing energy use by around 50% is an admirable goal, we have contacted ASML to ask whether this is achievable and whether their net-zero targets are reliant on innovations in this space. Relying on innovation is uncertain at best and could lead to ASML missing its targets.
As part of this communication, we have questioned the company's water usage, which was 1.4 million tonnes in 2024. In its public reporting, ASML claims that this is a small amount and doesn’t have plans to reduce its water usage. Water is a critical resource that needs to be cared for, and ELM maintains this as a part of our communication.

Our Investments

Software companies are integral to the global economy, offering a vast array of benefits that span various sectors. Their importance is especially highlighted in the productivity gains they unlock for small businesses, students, and workers, which in turn drives economic growth. Additionally, the sustainability credentials of these companies are becoming increasingly vital.

The advancement of software technology has led to significant productivity improvements across various sectors. For businesses, particularly small and medium enterprises (SMEs), software has revolutionized operations by streamlining processes, enhancing efficiency, and improving output quality. Tools like automated inventory management systems and productivity software save time, reduce errors and improve overall efficiency. Accounting software can support small business owners and entrepreneurs, and provide them with the tools needed to stay engaged with the finances of their business efficiently, allowing them to focus on their core business. This increased efficiency has a direct impact on profitability and competitiveness in the market. Moreover, software enables real-time collaboration and data-driven decision-making, which are crucial for the efficient functioning of modern businesses. Software solutions can also help entrepreneurs and creatives access more customers in new markets. This is particularly important for niche businesses and artists.

Innovations in technology, such as cloud computing, data integration, and edge computing, are playing a significant role in both digital transformation and sustainability efforts. Cloud computing, for example, is more energy-efficient than on-premises alternatives and reduces carbon emissions significantly. These advancements suggest that technological innovations can align with sustainability goals, offering a win-win scenario for businesses and the environment.

Software solutions are vital to the global economy due to their significant contributions to productivity and economic growth. Their role in enhancing the efficiency of small businesses, aiding in education, and improving the work environment for employees is invaluable.

Digitisation and Future Technology - Software and Services

Description:
Microsoft is a global technology leader offering a wide range of software products, services, and solutions. Renowned for its Windows operating systems and Office productivity suite, including popular applications like Word, Excel, and PowerPoint, Microsoft enhances productivity for individuals and businesses. Its cloud platform, Azure, facilitates scalable cloud computing and services. Microsoft's innovative tools like Teams and Dynamics 365 streamline collaboration and business processes, driving efficiency and effectiveness. The integration of artificial intelligence and machine learning across its products further automates tasks and provides insightful analytics, unlocking new levels of productivity and innovation.
Impact:
Microsoft has committed to removing all carbon the company has emitted since its founding by 2050. The company reported in 2025 that it had reduced its Scope 1 and 2 emissions by 30% from 2020, but its Scope 3 emissions had increased by 26% in that time. Microsoft has secured a deal that will restart a nuclear energy facility in Pennsylvania. This will provide the company with a reliable source of clean energy designed to supply its data centres in the region. On the road to achieving their 2050 goal, Microsoft has a 100% renewable electricity goal by 2030, as well as removing more carbon than they emit. The company invests in dozens of carbon free electricity projects across the world, quickening the adoption of these critical technologies.
Microsoft offers emissions impact tracking for its Azure and M365 products. This transparency empowers users to make an informed decision on their use of these products. The company has provided digital skills training to over 42 million people globally through its initiatives, such as Microsoft Learn and LinkedIn Learning. Additionally, Microsoft's AI for Good program supports projects that address critical societal challenges, including healthcare, accessibility, and environmental sustainability.
Engagement Topics:
Microsoft continues to expand their data centre operations, which is rapidly adding to its overall energy consumption. This is why we have reached out to Microsoft, asking whether they will be able to reach their carbon-negative by 2030 goal and their 100% renewable electricity goal. We are also questioning the expansion of their Scope 3 emissions, which means that, despite reductions in Scope 1 and 2 emissions, they are actually emitting far more than they were in 2020. ELM has contacted Microsoft over these concerns and will continue to do so.
Description:
ServiceNow, founded in 2004 and headquartered in Santa Clara, California, is a global leader in cloud-based workflow automation and IT service management. The company's platform enables organisations to digitise and streamline various business processes, from IT service delivery to employee onboarding.
Impact:
ServiceNow’s software enables businesses to transform and adapt to evolving conditions. They also help companies manage and execute their ESG programs. In 2023, the company achieved carbon neutrality across its global operations and committed to reaching net-zero emissions by 2030. ServiceNow has also set a goal to use 100% renewable electricity across its global operations by 2025. ServiceNow is committed to supporting education and workforce development. The company aims to skill one million people on its platform by 2024, contributing to closing the digital skills gap. Through its NextGen Program, the company has trained thousands of individuals in digital skills at no or little cost, with a focus on underserved communities.
ServiceNow’s software enables businesses to transform and adapt to evolving conditions. They also help companies manage and execute their ESG programs. In 2025, the company reported that they have reduced emissions by 60% per dollar earned since 2019. This also came with a 27% increase in absolute emissions since 2019. The company provides customers with carbon footprint reports detailing their Scope 1, 2 and 3 emissions from ServiceNow’s services. This transparency allows customers to more easily reach their own sustainability objectives.
Engagement Topics:
We have engaged ServiceNow over email regarding its 2025 renewable electricity goal to ensure that it will maintain it. As part of this communication, we requested that the company increase the percentage of suppliers with Science Based Targets by 2026 to higher than 65%. The cascading effects that SBTs can have are critical, and if ServiceNow increased this target, it would have an outsized impact on global emissions in the next 25 years.
Description:
Intuit is a financial software company that specialize in personal finance, small business accounting, and tax preparation. Their aim is to empower consumers and small businesses by automating financial tasks and enhancing financial literacy.
Impact:
In 2024, the company continued to support millions of small businesses and entrepreneurs globally. Given their scale, they regularly conduct research into the small business ecosystem to learn about how they are adapting to new challenges.
The company also focused on sustainability, committing to net-zero emissions by 2040 and reducing Scope 1 and 2 emissions 42% by 2030. They continued their decade-long efforts in reducing carbon footprint through energy-efficient practices and renewable energy. Intuit already uses 100% renewable energy and commits to continue this practice. The company has switched from their Climate Positive program to their science-based net-zero goal, meaning net-zero by 2040. Employee engagement in sustainability is encouraged through reimbursements for eco-friendly purchases. Additionally, Intuit is enhancing its workplaces with sustainable initiatives, including a new LEED Platinum building, promoting sustainable commuting options, lower consumption lighting and removal of gas ovens.
Engagement Topics:
After reviewing Intuit's sustainability reporting, ELM is satisfied that this company has sufficiently progressive climate goals and is an example to others in the field.
Description:
Palantir is a global software company specialising in data analytics and digital solutions. They offer Foundry, an analytics platform for industries ranging from healthcare to automobiles to energy. They also offer Gotham, an analytics platform for military, intelligence agencies and law enforcement.
Impact:
Palantir has a goal to reduce its emissions by 4.2% every year from a 2019 baseline. The company has successfully reduced its emissions by more than this goal since 2019. Palantir also purchases carbon credits to ensure it maintains net zero emissions every year. The company also offers services such as Foundry that are able to track and report on companies' emissions, which automatically update as new data points become available.
Engagement Topics:
ELM has engaged with Palantir on the topic of climate strategy, encouraging the company to strengthen its sustainability targets to align with the Science Based Targets initiative. Progress toward SBTi acceptance would demonstrate that Palantir is on a credible pathway to achieving net zero within an appropriate timeframe.
Description:
Spotify is a leading audio streaming company based in Sweden. Recently, it has branched out into streaming and owns its own podcasts. Spotify hosts 100 million songs and 7 million podcasts on its service, available for streaming around the world.
Impact:
Spotify reported that in Q3 of 2025, it had 713 million monthly active users, an 11% increase in 12 months. Across all emission scopes, Spotify emitted 195,027 tonnes of CO₂e in 2024. The company seeks to achieve net zero across all scopes 2030, a pioneering goal that is far ahead of many others in the industry.
Engagement Topics:
ELM is engaged with Spotify on content governance and responsible platform management, including discussions around the company’s association with the podcaster Joe Rogan, whose content has spread COVID-19 misinformation and harmful pseudoscience.

Our Investments

The biotechnology industry has had a transformative impact on society.

The development of insulin is a prime example of biotechnology’s impact on healthcare. Since the discovery of insulin in 1921, biotechnology has been instrumental in refining and improving insulin therapy. Genetic engineering, based on structural insights of insulin, has enabled the creation of insulin analogs with optimised pharmacokinetic profiles. These innovations have profoundly improved the quality of life and life expectancy for people with diabetes. The introduction of fatty acid acylation technology, for instance, has led to the development of long-acting insulin analogs, significantly enhancing diabetes management.

In conclusion, the biotechnology industry has been a catalyst for significant improvements in healthcare and public health. The advancements in diabetes care and insulin therapy have revolutionised the management of a condition that affects millions globally.

Healthcare - Biotechnology and Future Health

Description:
Novo Nordisk, a global healthcare company founded in Denmark in 1923, is a leader in diabetes, obesity and adjacent diseases. The highest valued company in Europe, Novo Nordisk is the maker of drugs such as Ozympic, used to treat diabetes and obesity.
Impact:
Novo Nordisk aim to have zero Scope 1 and 2 emissions by 2030 and net zero Scope 3 emissions by 2045. They’ve already achieved 85% renewable electricity, but to keep themselves on track for their 2045 goal, they’ve set a 2033 interim goal of a 33% emission reduction. They are also committed to reducing plastic use per patient by 30% by 2033 and are working on creating more recyclable injection pens.
As a global pharmaceutical company, Novo Nordisk's impact on communities goes beyond its sustainability efforts. In 2024, its medicines reached 45.2 million people, and its Changing Diabetes in Children program has helped 64,000 children since 2009. The company's innovative GLP-1 treatments for diabetes and obesity have shown remarkable efficacy, with Wegovy (semaglutide) demonstrating significant weight loss results and potential cardiovascular benefits.

Our Investments

Medical device companies play a pivotal role in advancing healthcare, significantly impacting society by enhancing life expectancy and quality of life. The advancements they bring forth not only transform patient care but also innovate solutions for complex health issues, contributing significantly to the global healthcare landscape.

Innovations in medical devices have made a profound impact on extending human life expectancy. From the 19th century to recent years, the average global life expectancy has surged from 45 to nearly 80 years, largely due to medical progress, including advances in medical devices. These devices span a broad spectrum, encompassing diagnostics, procedures, and prescription drugs. They contribute to healthier lifestyles, preventive care, more accurate medical diagnosis, and improved quality of treatment post-diagnosis. Surgical advancements, for example, have moved towards more precise and minimally invasive procedures, significantly improving treatment outcomes

Beyond life expectancy, these companies also immensely improve the quality of life for patients. The development of minimally invasive surgery techniques, for example, involves smaller incisions and shorter recovery times, enhancing patient experiences significantly. Additionally, the management of chronic diseases has been revolutionized through devices like continuous glucose monitors and insulin pumps, particularly in diabetes care. These innovations not only ease disease management but also minimize the risk of complications, ultimately improving patient outcomes.

Moreover, the role of medical device companies was particularly highlighted during the COVID-19 pandemic. They were thrust into the spotlight with an unprecedented demand for diagnostic tests, personal protective equipment (PPE), ventilators, and other critical medical supplies. In response, these companies rapidly increased manufacturing capacities and capabilities, and also sought creative solutions like partnerships and open-source equipment design to meet public health needs.

In conclusion, medical device companies are integral to the advancement of healthcare. Their contributions in extending life expectancy, improving quality of life, managing chronic diseases, bolstering the economy, and responding to public health emergencies underscore their vital role in society. The continued support and investment in these companies are essential for the ongoing advancement of healthcare and the betterment of global society.

Healthcare - Medical Devices

Description:
ResMed is a global leader in medical equipment for treating, diagnosing, and managing sleep apnoea and other chronic respiratory disorders. They specialise in designing innovative products like CPAP (Continuous Positive Airway Pressure) devices, ventilators, and digital health solutions.
Impact:
In 2024, the company provided treatment to over 144 million people with sleep apnea and other chronic respiratory diseases, an increase from 137 million in 2023. As the largest CPAP supplier, ResMed has a responsibility to ensure patients have access to the treatment. When their largest competitor experienced a product recall, ResMed was able to increase supply, albeit not to the full extent, due to supply chain constraints.
The company continues to grow and supply patients with CPAP machines, which are the most effective treatment for sleep apnoea, even in the face of GLP-1 competition. In 2023, ResMed expanded its outreach programs, providing over 1 million devices to patients in low- and middle-income countries. The company also collaborates with healthcare providers and organisations to address disparities in respiratory care. In 2024, the company had over 30 million customers using cloud-connected devices. ResMed aims to repair rather than replace over 90% of its products by 2030. In 2025, ResMed also started embedding sustainable criteria into all new product designs.
Engagement Topics:
ResMed does not have renewable electricity or net zero targets within its company, but rather for specific branches operating in certain countries. ELM is engaging the company over email to request that such targets be introduced in their next reporting season.
Description:
Intuitive Surgical is renowned for its pioneering role in robotic-assisted, minimally invasive surgery. Their flagship product, the da Vinci Surgical System, revolutionised surgery with its precision, flexibility, and control, enabling surgeons to perform complex procedures with enhanced vision, precision, and dexterity. The company focuses on continually advancing the technology of robotic-assisted surgery, aiming to improve patient outcomes, reduce recovery times, and increase the efficiency of surgical procedures across various medical specialties.
Impact:
In 2024, the company reported that over 16 million procedures were performed using da Vinci systems globally, a 88% increase from the previous year. This growth demonstrates the increasing adoption and impact of Intuitive's technology in various surgical specialties, including urology, gynecology, and general surgery. The company's latest da Vinci system, the da Vinci Xi, has expanded the range of procedures that can be performed robotically, potentially benefiting more patients. The da Vinci robot now operates in 72 countries.
Engagement Topics:
We have engaged with Intuitive Surgical on strengthening its environmental sustainability commitments. While the company delivers strong social outcomes globally, its climate-related goal setting remains limited. We are encouraging Intuitive Surgical to establish clear renewable electricity and net-zero targets to complement its existing emissions reporting and enhance its overall sustainability performance.

Our Investments

Our Sustainability Framework within the 7 Responsible Investment Strategies

The Responsible Investment Benchmark Report by Responsible Investments Association Australasia (RIAA) and the Global Sustainable Investment Review, outlines 7 strategies within the broad investment category of Responsible Investments:

ESG Integration is a popular strategy in Australia, and considers environmental, social and governance factors in the investment process. ESG Integration attempts to convert ESG risk into investment risk, and if there is still sufficient investment return on offer to compensate for the total risk, then the investment may proceed.
Corporate Engagement & Shareholder Action covers shareholders utilising their voting rights and other powers as well as engaging with management and the board to instigate a certain outcome or corporate behaviour.
Negative Screening explicitly excludes certain sectors or companies from the portfolio’s investable universe based on ESG criteria. This ensures that the portfolio is never invested in companies that are causing harm.
Norms-Based Screening involves screening investments based on compliance with international convention, provided by organisations such as the UN, OECD and ILO. This ensures that portfolio companies adhere to minimum global standards on sustainability matters such as labour, environmental and supply chain policies.
Positive Screening can be considered the opposite of Negative Screening, and involves explicitly including certain sectors or companies into the portfolio based on ESG criteria. This is also known as Best in Class Screening.
Sustainability Themed Investment involves investing only in certain sustainability themes such as climate change, renewable energy and water safety.
Impact Investing involves targeted investments with a specific objective or outcome in mind.

Our objective to facilitate a more sustainable future for all requires backing companies that are making a positive change (Positive Screening), withdrawing capital from those that are causing harm (Negative Screening) and also supporting companies that are trying to genuinely change their business practices for the better (Corporate Engagement & Shareholder Action).

We incorporate ESG Integration (with a particular focus on Governance) during the investment analysis and portfolio construction process, as companies with high ESG scores are more compelling investments which tend to have lower investment risk.

Sustainability from the Investor’s Perspective

Investment management fees affect shareholder returns, which is particularly important given expensive active fund managers have generally under-performed. We charge a base management fee that is competitive, skewing our remuneration to performance-based fees.

Apart from a robust investment management process, we also focus on the legitimate value creation that comes from long-term investing rather than short-term trading. We invest only in companies we believe will generate superior returns over the long term. This approach benefits our clients through lower taxes, lower transaction costs and compounding returns.

Conclusion

Our core philosophy at ELM Responsible Investments is that innovative companies driving positive change can also yield strong financial returns. Elsewhere on our website you can find information about the ongoing financial performance of the Global Fund (although we are pleased to note 2023 was a very strong year, with Morningstar Australia ranking the fund in the top 3% of similar funds* for the year), while this report has detailed how we select companies, and what impact those companies are making, to give investors confidence that we are living up to our promise of investing for positive change.

Earlier, we detailed our multi-step process for selecting companies to invest in, bringing together the UN Sustainable Development Goals with the Impact Management Project’s 5 Dimensions of Impact and classification system, to create a process that utilises both a negative and a positive screen. This enables us to select a portfolio of companies that are aligned with the themes of Health and Education, Environment and Climate, and Digitization and Future Technology.

We believe that the demonstrated impact of each of these companies individually underscores the effectiveness of our process. Whether it is Nu Holdings removing financial barriers in Brazil, ASML’s ground-breaking work in photolithography enabling a myriad of technological advancement, Dexcom’s continuous glucose monitoring (CGM) systems improving quality of life and health outcomes for diabetics, or any of our other holdings, we are confident that each company is contributing to the betterment of people and the planet.

The ELM Responsible Investments Global Fund: where financial goals and sustainable ethics align.

*Morningstar Australia Category: Equity World Large Blend 2023