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Solaris Investment Management Limited

PRI reporting framework 2020

You are in Direct - Listed Equity Incorporation » ESG incorporation in actively managed listed equities » Implementation processes » (A) Implementation: Screening

(A) Implementation: Screening

LEI 04. Types of screening applied

04.1. Indicate and describe the type of screening you apply to your internally managed active listed equities.

Type of screening

Screened by


Solaris commenced management of one negatively screened client portfolio during 2016, another negatively screened portfolio in 2017 and another in 2019.  Those mandates require that stocks are screened based on products, activities and sectors.

All portfolios participate in the Solaris process where active discussion is held around country / geopolitical risks.  Where Solaris feels that these risks are too great we may choose to avoid (or screen out) companies with material exposure to those countries.  Similarly companies may exhibit behaviours that are assessed as untenable in terms of investment risk.  For example (this list is not exhaustive):

  • legacy issues relating to pollution or remediation issues
  • inappropriate labour use within the supply chain.
  • insufficient governance controls or evidence of poor governance leading to other concerns within the company - eg safety failures, exposure to corrupt practices

Companies are assessed on a case by case basis and to date we have excluded a number of stocks on the basis of these concerns.


Screened by


Companies that operate in countries or geographic regions that exhibit greater levels of transparency and good governance are typically exposed to less operational risk.

Companies that exhibit leading corporate governance procedures typically have exhibited better risk management strategies and have demonstrated a greater understanding of the challenges and opportunities facing the company. 

These companies are typically afforded a governance premium within our valuation assessments.

04.2. Describe how you notify clients and/or beneficiaries when changes are made to your screening criteria.

The Solaris screening criteria was formulated as part of our Initial Risk Screening Stage which has been in place for over 16 years.  The Initial Risk Screening Stage (of which the ESG screen forms part) is under constant review as an integral part of our investment process.

It is important to Solaris that this remains a fluid process as we review and reflect on the relevance of screens in a rapidly changing world.  This process is an internal one and as such has not been communicated to the public to date.

The screening criteria for the negatively screened portfolios is determined by the clients' Individual Mandate Agreements (IMAs).  The data for the negatively screened portfolio is reviewed and reflected in the database at least quarterly.  A dialogue is required to occur between Solaris management and the clients' representatives to make any alterations to the IMAs.

LEI 05. Processes to ensure screening is based on robust analysis

05.1. Indicate which processes your organisation uses to ensure ESG screening is based on robust analysis.

05.2. Indicate the proportion of your actively managed listed equity portfolio that is subject to comprehensive ESG research as part your ESG screening strategy.

05.3. Indicate how frequently third party ESG ratings are updated for screening purposes.

05.4. Indicate how frequently you review internal research that builds your ESG screens.

05.5. Additional information. [Optional]

LEI 06. Processes to ensure fund criteria are not breached (Private)