Responsible Investment

Responsible Investment

Delivering long-term value through responsible, sustainable investment.

Responsible Investment

The Ireland Strategic Investment Fund as a large and long-term investor in Ireland has a duty to actively contribute to the sustainability of the Irish economy for future generations and to encourage others to do the same. ISIF is a responsible investor, and the integration of environmental, social and governance (ESG) factors has been core to its investment approach since becoming a founding signatory to the UN-supported Principles for Responsible Investment (PRI) in 2006.

ISIF believes

ISIF believes

that responsibly managed companies, those that actively manage ESG issues, are best placed to achieve a sustainable competitive advantage and provide strong, long term investment opportunities.

ISIF’s approach to ESG is set out in its Investment Strategy and aligned with global best practice. ESG risks and opportunities are managed through a structured approach that includes capital allocation, integration, stewardship and, where appropriate, exclusion.

As a public fund, ISIF invests in a manner that is consistent with Government policy and long-term national priorities, including the Climate Action Plan and EU sustainable finance initiatives. ISIF reports regularly to stakeholders through its annual reporting, PRI disclosures and published ESG updates, including its Climate Report.

ESG Reports

ESG Reports

Explore ISIF's Responsible Investment and ESG Reports

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Investment Strategy

View ISIF's Investment Strategy

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Our Approach

ISIF invests on a commercial basis, targeting appropriate risk-adjusted returns while taking account of environmental, social and governance (ESG) risks and opportunities. ISIF manages these risks and opportunities through a structured framework embedded across its investment process.

The framework is delivered through four core tools—capital allocation, integration, stewardship and exclusion—which are applied together to support effective decision-making and long-term portfolio performance. Used in combination, these tools enable ISIF to manage ESG-related risks, identify investment opportunities, influence positive change, and support sustainable financial returns.

This integrated approach ensures that ESG considerations are fully embedded within investment decision-making, rather than treated as a standalone activity.

This approach is guided by a set of core principles applied consistently across all funds managed by the NTMA, reflecting a commitment to responsible investment, long-term value creation and transparency. The following five principles guide the ESG approach taken by the ISIF and the NTMA across all funds controlled and managed by the ISIF:

  • The NTMA invests sustainably in a manner that meets the needs of the present without compromising the ability of future generations to do the same.
  • The NTMA is a universal owner and therefore thinks long term to deliver sustainable returns. This requires the consideration of systemic risks, such as Climate Change.
  • The NTMA acknowledges that risks associated with ESG matters will vary across asset classes, sectors, and companies and therefore across funds.
  • The NTMA will choose the most effective instrument to realise positive ESG change in seeking to create value and/or reduce risk over the long term in its stewardship of the funds.
  • The NTMA is transparent and accountable with respect to its approach to ESG.

How We Apply Our Approach

A Risk Decision Making Framework seeks to manage risks posed to the assets of the ISIF by ESG matters of relevance to the achievement of the investment policy. The framework involves four steps – 1) identification, 2) assessment, 3) management and 4) monitoring to address risks and concerns associated with relevant ESG matters, as set out in more detail in the ISIF Investment Strategy.

ISIF allocates capital across asset classes to deliver its Investment Strategy, combining benchmarks and targeted investments to capture ESG opportunities. Capital is focused on transformational investments across key impact themes, including Climate and Energy Transition, Food, Agriculture and Marine, Housing, Infrastructure and Sustainable Development, and Scaling Irish businesses. ISIF supports the sustainable development of the Irish economy while retaining the flexibility to act on urgent national priorities. This includes a “National and Compelling” theme, enabling the Fund to respond quickly and invest strategically during periods of transition or instability.

How ISIF Invests

Integration involves the consideration of ESG issues at each stage of the investment process to better manage risk and improve returns. ISIF’s approach is aligned with the UN-supported Principles for Responsible Investment (PRI) across both public and private markets. Investment managers are assessed on their ability to integrate ESG considerations within their processes and their broader firm-level commitments to responsible investment. ISIF complements this through independent monitoring of ESG matters at both portfolio and individual investment level, supported by engagement with managers and third-party analysis, including ISS ESG for its ISIF Funding Portfolio, alongside oversight through custodian reporting. Within the Irish Portfolio an integrated ESG and Climate Framework enables ISIF to assess the real world impact of its investments by considering both ESG factors and climate-related risks, using structured tools including ESG screening and due diligence, a climate and carbon questionnaire, and portfolio metrics such as WACI, which together inform a comprehensive assessment of investee ESG and climate characteristics integrated into investment decision-making.

ISIF has a long history of Stewardship which involves the use of influence to protect and enhance long-term value through active engagement with investee companies and the exercise of proxy voting rights. This is supported by specialist third-party expertise through EOS at Federated Hermes, alongside ISIF’s contribution to setting engagement priorities and collaborating with other investors to promote constructive dialogue. ISIF may also engage directly or through investment managers, informed by an annual ESG survey across the Irish Portfolio, which supports the ongoing assessment of managers and monitoring of ESG risks, with further information available in the engagement and voting documents.

Read Engagement and Voting Documents

Exclusion refers to prohibiting investment in particular securities, issuers, sectors or instruments based on ESG risk assessment, and is applied by the NTMA on a limited basis, reflecting its preference for stewardship as a means of effecting change, with the Exclusion Framework outlining the basis for discretionary exclusions. Certain investments are automatically excluded from ISIF under legislation, including fossil fuel undertakings under the Fossil Fuel Act 2018 and companies involved in cluster munitions or anti-personnel mines under the Cluster Munitions and Anti-Personnel Mines Act 2008, with a full list available separately. In addition, under the Risk Decision Making Framework, the NTMA may apply discretionary exclusions where investments pose a risk to ISIF’s assets or its mandate, and these currently include tobacco manufacturers, high-carbon companies such as coal processors and oil sands, companies involved in nuclear weapons, and certain companies listed on the United Nations database relating to activities in the Occupied Palestinian Territories.

Exclusion lists

ISIF’s Climate Goal

ISIF’s approach has evolved over time — from early responsible investment commitments and governance foundations, to deeper ESG integration, climate focus, stewardship activity and greater transparency through public reporting.

Investing with impact is key to ISIF’s mandate as it continues to support the wider economy, deploying significant capital and attracting co-investment in innovative and exciting ways that match the double bottom line mandate of generating a commercial return and supporting economic activity and employment.

ISIF’s climate goal is to support long-term transition to Net Zero in Ireland before 2050 by driving substantial emissions reductions within the ISIF Portfolio and increasing ISIF’s positive climate impact by 2030.

ISIF will:

  • Allocate capital to invest in assets and businesses that lower emissions and facilitate or take action to mitigate the impact of climate change.
  • Assess the climate commitments of ISIF’s investees and asset managers.
  • Support companies and sectors that are leaders in emissions efficiency.
  • Measure progress on emissions reductions across the portfolio.
  • Conduct climate financial risk assessment in line with TCFD and ISSB recommendations.
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