1. Negative screening: We have three levels of negative screening, including: our Group-wide exclusions on controversial weapons and soft food commodities, exclusions of securities subject to sanctions by the UN, EU, US and/or the Swiss government; SRI restrictions on tobacco, thermal coal and unconventional oil & gas; and additional values-based exclusions/restrictions specific to individual funds and/or clients upon request. (For further information please see FI 01.3)
2. Positive/best-in-class screening: 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 actual results from actions undertaken. We have developed a similar tool for sovereign bonds.
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)