1. Negative screening: exclusion of companies involved in the production or distribution of controversial weapons, Financial instruments directly linked to 'essential food commodities' (wheat, rice, soy, corn) or sectors that can be considered as 'unethical' (i.e., tobacco, alcohol, gambling, pesticides etc.). Exclusion of countries sanctionned by UN, EU or Swiss government.
2. Positive selection is designed to identify 'best in class' companies (i.e., companies displaying superior management of significant ESG risks - such as the consumption of resources, climate change, fair governance or other key social issues). Our proprietary, innovative and dynamic ESG/CAR approach (consciousness, action, results) aims to differentiate those companies simply claiming good intentions from those which demonstrate showing actual results from actions undertaken. We have developed a similar tool for sovereign bonds, even it is not yet applied in our portfolios.
3. Norm-based screening: exclusion of companies that breach internationally agreed standards or norms (i.e., child labour and other complicit violations of human rights as defined by the United Nations Global Compact principles)