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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


Our negative screen evaluates a company’s products, services and practices to ensure they are not detrimental to society or the environment. U Ethical avoids investing in companies that:

- cause unacceptable damage to the natural environment

- infringe on human rights

- support oppressive regimes

- cause or perpetuate injustice and suffering

- have unacceptable occupational health and safety practices including disregard for minimum wage laws.

U Ethical also systematically excludes companies with operations in the following areas due to their inherent negative impacts:

- Oil, coal, gas (power generation, exploration, extraction)

- Uranium for non-medical uses

- Armaments

- Predatory lending

- Gambling

- Pornography and adult entertainment

- Animal cruelty

- Alcohol production

- Tobacco manufacturing

We recognise that there are occasions when companies inadvertently violate these principles and make genuine efforts to rectify this. Furthermore, we may choose not to exclude a company where a contravention of the principles constitutes less than 5% of the company’s revenue or earnings. In such instances, the contravention may be outweighed by significantly positive factors.

Screened by


U Ethical screen out companies with below average ESG ratings across all portfolios. U Ethical recognises that ESG ratings are relative to sector peers and can be driven by policies and reporting capabilities rather than specific actions. Therefore, external ESG ratings are complemented by internal assessments to ascertain whether the company meets our ethical standards.

U Ethical also excludes a number of products and practices from its investable universe, which are deemed to be harmful to either society or the environment.

Positive companies are assesss through a UN Sustainable Development Goals framework. All portfolios strive for at least 10% exposure (although often it's much higher) to companies significantly contributing to the achievement of the goals.

Screened by


Our portfolios are screened via MSCI ESG Manager for compliance with UN Global Compact Principles.

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

We do not currently advise clients directly when there is an update to our investment policy/screening. We indirectly notify through a number of mediums:

Updating website pages with the most current investment policy
Sharing updates on our website in the form of blog posts
News shared across our LinkedIn page
As part of quarterly newsletters with feature articles on this
Calls with clients 

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]

The investment team receive daily alerts from third-party providers on the following

- Controversies related to current holdings

- Changes to ESG ratings

- Screening criteria is reviewed on a quarterly basis at the U Ethical Investment Committee. Any updates are subject to Investment Committee approval

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