Tundra’s ESG process is governed by international standards of responsible investing. These include screening for “norm-based” violatioons, “controversial weapons” and “sector-based” breaches. Norm-based breaches include screening for breaches that are in contravention with the United Nations Global Compact, the guiding principles on Business and Human Rights, OECD Guidelines for Multinational Enterprises and the ILO Tripartite Declara[on of Principles concerning Multinational Enterprises and Social Policy. During this screening, companies’ adherence to international norms for human rights, the environment, labor standards and anti-corruption are assessed.
Controversial weapons. During this screening, a company’s involvement with prohibited or banned weapons is assessed. There is a zero tolerance as far as these weapons are concerned. Companies with any involvement in controversial weapons are excluded from the fund.
For the Tundra Sustainable Frontier Fund there are additional sectors that are considered to be no-go areas in our sustainability universe. These are sectors involving alcohol, pornography, tobacco, weapons, gambling and extraction/production of fossil fuels. However, if the total revenue from a product from one of these sectors does not exceed 5%, the company may still be eligible for the sustainable fund.