KEPLER's ethical committee agreed on a comprehensive list of exclusion criteria including products, activities, sectors, environmental and social practices and corporate governance. Operationalisation of criteria is done by oekom research AG. Additionally, positive criteria are applied. KEPLER's ESG provider oekom research established a sector-based ESG-matrix comprising social and environmental impact. The higher social and environmental impacts of a sector, the higher requirements for ESG management. This implies higher barriers to receive 'prime' status. Moreover, an array of international norms are considered.
Screening criteria are established by oekom research and are continuously reviewed and discussed in the KEPLER Ethics Committee. Oekom research screens more than 3.800 companies and 56 countries and the EU.
Concerning companies, a best-in-class approach rates companies on the basis of about 100 sector-specific criteria. Additionally, exclusion criteria are applied. As far as countries (and EU) are concerned, a best-in-class approach rates countries on the basis of about 100 environmental and social criteria. Additionally, exclusion criteria are applied.
Oekom research's rating criteria are continuously reviewed by oekom and its rating committee in different intervals. If a change in exclusion criteria is made, new criteria are published online.