Ethical screening policies

THERE are three main types of ethical screen that investment managers can apply.

In practice, many managers apply a combination.

Negative screening excludes companies involved in specified activities like tobacco, alcohol, gambling, uranium or armaments.

Positive screening targets companies with ‘positive’ social and environmental policies. This favours companies in industries like renewable energy, recycling and water engineering, as well as companies in mainstream industries but with a strong commitment to corporate philanthropy, environmental management, corporate governance and so on.

Best of sector invests in all industry sectors but gives preference to those companies with superior environmental performance within their sector. Focuses on relative performance of companies rather than absolute standards.

Add your comment

BNIQ sponsored byECU School of Business and Law


6th-Australian Institute of Management WA20,000
7th-Murdoch University16,584
8th-South Regional TAFE10,549
9th-Central Regional TAFE10,000
49 tertiary education & training providers ranked by total number of students in WA

Number of Employees

BNiQ Disclaimer