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Many investors believe it's important to invest with their beliefs and values in mind. Sustainable investing allows investors to align their wealth with purpose.

Sustainable Investing

Invest in the World You Want to Live in

End poverty in all its forms everywhere

  • Progress against poverty continues but has slowed, jeopardizing achievement of the Goal
  • More than one third of employed workers in sub-Saharan Africa still live on less than $1.90 a day
  • Social protection systems fall short of reaching the world’s most vulnerable people, including children
  • The toll of climate-related disasters is rising, with poorer countries most affected

Source: The Sustainable Development Goals Report 2019, United Nations

End hunger, achieve food security and improved nutrition and promote sustainable agriculture

  • After extended progress, the number of people suffering from hunger is on the rise
  • Chronic undernutrition (stunting) and acute undernutrition (wasting) in children are declining, but not fast enough
  • The prevalence of overweight, another form of malnutrition, is increasing in all age groups
  • Small-scale food producers are a big part of the solution to world hunger
  • Steeply climbing food prices affect countries across several regions
  • Support to the agriculture sector from domestic and foreign sources continues its downward trend

Source: The Sustainable Development Goals Report 2019, United Nations

Ensure healthy lives and promote well-being for all at all ages

  • Sustained investment in maternal health, especially in sub-Saharan Africa, is needed
  • If the Goal target for under-5 mortality is met, the lives of an additional 10 million children will be saved by 2030
  • The decrease in HIV incidence is falling short of the target, despite steady progress in sub-Saharan Africa
  • With progress against malaria at a standstill, increased efforts are urgently needed in the most affected countries
  • Gaps in detection and treatment of tuberculosis, along with drug-resistant strains, are pushing progress against the disease off course
  • Health personnel are stretched beyond their limit in countries where they are needed most
  • Countries have greater capacity to detect than to respond to public health emergencies

Source: The Sustainable Development Goals Report 2019, United Nations

Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all

  • Shockingly low proficiency rates in reading and mathematics signal a global learning crisis
  • Early childhood education offers a head start in school, but one third of the world’s children are being left behind
  • Too many schools in sub-Saharan Africa lack the basic elements of a good quality education: trained teachers and adequate facilities
  • Despite progress, 750 million adults still cannot read and write a simple statement; two thirds of those adults are women

Source: The Sustainable Development Goals Report 2019, United Nations

Achieve gender equality and empower all women and girls

  • Women and girls continue to be subjected to harmful practices that profoundly affect their lives
  • Women and girls perform a disproportionate share of unpaid care and domestic work
  • At home, at work and in political life, women are too often denied decision-making power
  • In too many countries, gaps in legal frameworks are failing to protect women’s rights
  • Financing gaps limit implementation of laws and policies on gender equality

Source: The Sustainable Development Goals Report 2019, United Nations

Ensure availability and sustainable management of water and sanitation for all

  • Despite progress, accelerated action is needed to provide billions of people with safely managed drinking water and sanitation
  • Water stress affects people on every continent, requiring immediate and collective action
  • Countries are advancing the integrated management of their water resources, but more rapid progress is needed
  • Commitments of donor aid to the water sector have increased, while disbursements have levelled off

Source: The Sustainable Development Goals Report 2019, United Nations

Ensure access to affordable, reliable, sustainable and modern energy for all

  • Nearly 9 out of 10 people now have access to electricity, but reaching the unserved will require increased efforts
  • Three billion people still lack clean cooking fuels and technologies, posing a grave threat to human health and the environment
  • Progress in the electricity sector must extend to transportation and heating to meet an ambitious renewable energy target
  • Energy efficiency continues to improve, but more concerted action is needed
  • International financing for renewable energy in developing countries is rising sharply

Source: The Sustainable Development Goals Report 2019, United Nations

Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all

  • Labor productivity is rising, although wide disparities can be found among regions
  • Informal employment remains a major challenge to the goal of decent work for all
  • The continuing pay gap between women and men is a glaring reminder of gender inequality
  • The global unemployment rate is steadily dropping, but remains high in some regions and among youth
  • The talents and energy of one fifth of the world’s youth are not being effectively harnessed

Source: The Sustainable Development Goals Report 2019, United Nations

Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation

  • Despite recent progress, industrialization in least developed countries is still too slow to meet the 2030 goal target
  • Small-scale industries in the poorest countries lack the financial services they need to grow and innovate
  • Higher-tech manufacturing is growing worldwide, except in sub-Saharan Africa
  • Global spending on research and development has reached $2 trillion a year, with wide disparities among countries
  • Almost everyone now lives within range of mobile-cellular networks, but not all can afford to use them

Source: The Sustainable Development Goals Report 2019, United Nations

Reduce inequality within and among countries

  • Data show mixed progress on the sharing of prosperity within countries
  • Rich and poor countries alike can benefit from policies promoting equality and inclusivity
  • Countries with a high proportion of non-performing loans need to attend to the health of their banking systems
  • Globally, the share of national output used to remunerate workers is declining
  • Lower-income countries continue to benefit from preferential trade status
  • Policies to facilitate orderly, safe, regular and responsible migration are widespread, but far from universal

Source: The Sustainable Development Goals Report 2019, United Nations

Make cities and human settlements inclusive, safe, resilient and sustainable

  • Rapid urbanization and population growth are outpacing the construction of adequate and affordable housing
  • Access to public transport is increasing, but faster progress is needed in developing regions
  • Municipal waste is mounting, highlighting the growing need for investment in urban infrastructure
  • In too many cities, air pollution has become an unavoidable health hazard
  • Open public spaces make cities more inclusive, but many residents are not within easy walking distance of them

Source: The Sustainable Development Goals Report 2019, United Nations

Ensure sustainable consumption and production patterns

  • Shrinking our material footprint is a global imperative
  • The lifestyles of people in the richest nations are heavily dependent on resources extracted from poorer countries
  • Improvements in the efficiency of resource use are not proceeding fast enough

Source: The Sustainable Development Goals Report 2019, United Nations

Take urgent action to combat climate change and its impacts

  • Unprecedented changes in all aspects of society will be required to avoid the worst effects of climate change
  • Countries are developing disaster risk reduction strategies in the face of growing climate threats
  • Climate-related financial flows have increased, but are small in relation to the scale of the problem and still overshadowed by investments in fossil fuels
  • More countries are making plans to boost their resilience and capacity to adapt to climate change

Source: The Sustainable Development Goals Report 2019, United Nations

Conserve and sustainably use the oceans, sea and marine resources for sustainable development

  • Land-based pollutants and marine debris threaten coastal habitats, but improvements in water quality are achievable
  • Increasing acidification is threatening marine life and hampering the ocean’s role in moderating climate change
  • The extent of marine protected areas has doubled since 2010, but more must be done to safeguard key biodiversity areas
  • The decline in fish stocks appears to have stabilized; now they need to be rebuilt, especially in severely depleted regions
  • States have taken important steps to combat illegal, unreported and unregulated fishing
  • Most countries have frameworks to address the needs of small-scale fisheries; the next critical stage is their implementation

Source: The Sustainable Development Goals Report 2019, United Nations

Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss

  • Accelerating levels of biodiversity loss demand an emergency response
  • Land degradation is affecting one fifth of the Earth’s land area and the lives of one billion people
  • Mountain ecosystems provide essential environmental services, but their health varies widely among regions
  • Forest area is still declining, but at a slower rate
  • International agreements are forging innovative approaches to biodiversity conservation

Source: The Sustainable Development Goals Report 2019, United Nations

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

  • Young men are at higher risk of murder overall, while most victims of intimate partner homicide are women
  • The majority of trafficking victims are taken for sexual exploitation and forced labor
  • Birth registration is a human right, yet less than three quarters of children under 5 years of age worldwide are registered
  • Murder rates among human rights defenders, journalists and trade unionists are rising
  • More countries are establishing legal and institutional frameworks for the defense of human rights, but the pace of progress is slow

Source: The Sustainable Development Goals Report 2019, United Nations

Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development

  • Despite pledges to boost development financing, aid levels are falling
  • Effective mobilization of domestic resources, including through taxation, is critical
  • Personal remittances from migrant workers abroad are becoming the largest source of external financing in developing countries
  • Trade tensions among the world’s largest economies are reverberating, affecting producers and consumers worldwide
  • More than half the world’s population is online; attention must now be directed to the other half
  • Financial support for statistics has increased, but is still not sufficient to meet demand

Source: The Sustainable Development Goals Report 2019, United Nations

Sustainable Investing
Sustainable goals

Insights

In this outlook, members of our Impact Investing, Climate Research, and ESG Research teams share the themes they plan to focus on and continue discussing with clients and portfolio companies.
We believe the intersection of climate change and national security is in its early stages.
Understanding common misconceptions about investing in the water theme could help investors achieve better results.
Wellington Management lays out its ESG integration approach.
Data science allows investors to extract new insights from a growing array of data sources. Those insights can provide an informational edge.

Sustainable Investing at Hartford Funds

We offer the following mutual funds that use a sustainable-investing approach:

Hartford Climate Opportunities Fund - Seeks long-term capital appreciation by investing in companies that address climate change issues.

Hartford Global Impact Fund - Seeks long-term capital appreciation by investing in companies whose core businesses are focused on addressing the world’s major social and environmental challenges.

Hartford Sustainable Municipal Bond Fund* – Within a sustainable investing framework, seeks to provide current income that is generally exempt from federal income taxes, and long-term total return.

We also offer the following mutual funds and exchange-traded funds (ETFs) that integrate financially material ESG criteria along with other factors into the fund’s investment process**:

*Effective 4/30/21, the Hartford Sustainable Municipal Bond Fund (formerly known as the Hartford Municipal Income Fund) changed its name, objective and principal investment strategy. Please see the Fund’s prospectus for additional information.

**ESG Integration - There is not a uniform approach to ESG integration and portfolio managers may take different approaches to how they integrate such factors into their investment process. The subadviser’s analysis, including any evaluation of ESG factors, may not achieve the intended results. ESG factors are not the only factors considered and, as a result, the companies (or issuers) in which a Fund invests may not be ESG companies (or issuers) or have high ESG ratings.

ETFs are not mutual funds. Unlike traditional open-ended mutual funds, ETF shares are bought and sold in the secondary market through a stockbroker. ETFs trade on major stock exchanges and their prices will fluctuate throughout the day. Both ETFs and mutual funds are subject to risk and volatility.

Hartford Climate Opportunities Fund - Focusing on investments that involve climate change opportunities or sustainable and environmental initiatives may result in foregoing certain investments and underperformance comparative to funds that do not have a similar focus. The exclusion of certain issuers for reasons other than performance may negatively impact the Fund's performance.

Hartford Global Impact Fund - Investing in companies that seek to address major social and environmental challenges may cause the Fund to forego certain investment opportunities and underperform funds that do not have a similar focus. The exclusion of certain issuers for reasons other than performance may negatively impact the Fund's performance.

Hartford Sustainable Municipal Bond Fund - Focusing on investments that involve sustainable initiatives may result in foregoing certain investments and underperformance comparative to funds that do not have a similar focus. There is a risk that the municipal bonds identified by the sub-adviser as promoting sustainable initiatives do not operate as anticipated.

 

 

Important Risks: Investing involves risk, including the possible loss of principal. Using a sustainable investing approach may cause a Fund to underperform funds that do not have a similar focus.

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What is Sustainable Investing?

Sustainable investing generally includes strategies that consider traditional financial analysis along with environmental, social, and/or governance (ESG) factors. ESG factors may include:

Environmental

Climate change, natural-resource scarcity, pollution and waste

Social

Treatment of people and their health and safety, diversity, labor relations, human rights, community relations

Governance

Shareholder rights, executive compensation, political lobbying, board composition, corruption

A Growing Market

Sustainable investing is growing in popularity. Sustainable, responsible, and impact investing represent one out of every four dollars in assets under professional management in the United States.

Source: USSIF, 2020 Report on US Sustainable, Responsible and Impact Investing Trends

Who's Driving the Demand

Enthusiasm for sustainable investing is growing. More than eight in 10 US individual investors now express interest in sustainable investing. 67% of millennials have engaged in at least one sustainable investing activity.

Sustainable Investing – Interest and Adoption by US Individual Investors

Source: “Sustainable Signals”, Morgan Stanley Institute for Sustainable Investing, 2019

Investing in the Future Hasn’t Meant Sacrificing Returns

Sustainable investing and planning for your future financial needs are no longer mutually exclusive goals. The S&P 500 ESG Index has provided a risk-return profile that is in line with the S&P 500 Index.

Past performance does not guarantee future results. Source: Morningstar, 1/21. The performance shown above is index performance shown for illustrative purposes only and is not representative of any fund’s performance. Indices are unmanaged and not available for direct investment. The S&P 500 Index which is a market capitalization-weighted price index composed of 500 widely held common stocks. The S&P 500 ESG Index is a market capitalization-weighted index that is designed to measure the performance of securities meeting sustainability criteria, while maintaining similar overall industry group weights as the S&P 500. Standard deviation is a measure of how much an investment’s returns can vary from its average return. It is a measure of volatility and in turn, risk.

United Nations Sustainable Development Goals

In 2015, leaders from 193 countries created the United Nations Sustainable Development Goals—a blueprint to achieve a more sustainable future by 2030. Many of today’s sustainable investment options align with one or more of the goals listed below.

Click on an icon to learn more

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Hartford Funds Commitment to Sustainability

We believe our commitment to human-centric investing aligns with the ideas and concepts behind sustainable investing. In our view, sustainable investing encompasses approaches and research tools that span across an investing spectrum. Within our lineup, we offer certain funds with a defined sustainable-investment approach in addition to a select number of funds that use ESG criteria as one of many factors in the investment process.

We are also a member of a number of global organizations helping to improve reporting on ESG issues within the investment industry.

Hartford Funds Management Company, LLC is a

Signatory of:

Sponsor of:

Member of:

Our commitment extends beyond investing to the operational aspects of our business.
Learn more by reading our Sustainable Investment Policy.

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The material on this site is for informational and educational purposes only. The material should not be considered tax or legal advice and is not to be relied on as a forecast. The material is also not a recommendation or advice regarding any particular security, strategy or product. Hartford Funds does not represent that any products or strategies discussed are appropriate for any particular investor so investors should seek their own professional advice before investing. Hartford Funds does not serve as a fiduciary. Content is current as of the publication date or date indicated, and may be superseded by subsequent market and economic conditions.

Investing involves risk, including the possible loss of principal. Investors should carefully consider a fund's investment objectives, risks, charges and expenses. This and other important information is contained in the mutual fund, ETF or closed-end interval fund prospectus or summary prospectus, which can be obtained from a financial professional and should be read carefully before investing.

Mutual funds and the closed-end interval fund are distributed by Hartford Funds Distributors, LLC (HFD), Member FINRA/SIPC. Exchange-traded products are distributed by ALPS Distributors, Inc. (ALPS). Advisory services may be provided by Hartford Funds Management Company, LLC (HFMC) or its wholly owned subsidiary, Lattice Strategies LLC (Lattice). Certain funds are sub-advised by Wellington Management Company LLP and/or Schroder Investment Management North America Inc. Schroder Investment Management North America Ltd. serves as a secondary sub-adviser to certain funds. Hartford Funds refers to Hartford Funds Management Group, Inc. and its subsidiaries, including HFD, HFMC, and Lattice, which are not affiliated with any sub-adviser or ALPS. The funds and other products referred to on this Site may be offered and sold only to persons in the United States and its territories.

© Copyright 2021 Hartford Funds Management Group, Inc. All Rights Reserved. Not FDIC Insured | No Bank Guarantee | May Lose Value