To ensure compliance with our ethical and environmental values, negative screening and esg analysis is conducted across all new holdings prior to investment, and current holdings at regular intervals. Products and practices which we believe to be detrimental to either the environment or society are screened out of our investable universe.
Companies are also screened for their performance against material environmental, social and governance factors prior to investment. Along with internal research, U Ethical utilises MSCI ESG research, broker reports, ISS governance platform, news sources and many other relevant sources. The relevant ESG factors will vary by industry and company, we use the MSCI ESG scorecard data for each security to ensure the most material risks for each individual company are considered. Qualitative esg analysis helps us to ascertain whether the company has any practices which could breach our negative screening policy.
Our negative screening ensures we invest in line with our ethical values and those of our clients. We choose these strategies to ensure that only companies with strong ESG credentials come through in our investable universe. This is the most appropriate strategy for us due to limited resource. We lean on available, quantifiable ESG ratings where possible.