Screening is based both on desk-based research and company engagement activities. Company reports are reviewed to determine company activities. For the screened environmental thematic funds, any company that derives over 10% of its turnover from any one of these activities will not be invested in:
- Companies that manufacture or sell armaments. Although armaments may be used for self-defence or peace keeping, it is frequently difficult to determine their final use, so we avoid companies with involvement in this area.
- Alcoholic drinks: Companies that manufacture or sell alcoholic drinks, on account of the problems caused by alcohol abuse, ranging from ill health to domestic violence to road accidents.
- Companies that manufacture or sell tobacco products, due to the health problems associated with smoking.
- Companies that publish, print or distribute pornography, including on the internet, due to links with sexual discrimination and concerns over its corrupting influence on behaviour.
- Nuclear power: Companies that generate nuclear power or build nuclear power plants, on account of the continued risks from accidental discharges of radioactive substances and problems with the disposal of nuclear waste.
- Companies that operate betting or gambling facilities, due to concerns over the potentially addictive nature of gambling and its consequent impact upon the individual and their family, particularly those in lower income groups.
In addition, we avoid companies that conduct or commission animal testing for cosmetic or toiletry purposes. We also pay particular attention to issues such as sustainable sourcing of food and biotechnologies.
As an extra level of assurance, ESG profile including details of revenue from different company activities are source from research provider Sustainalytics.