Tag: Exclusion
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Negative screening
Negative screening Negative screening is an investment strategy used by investors to exclude certain sectors, companies, or stocks from their investment portfolios based on specific criteria deemed undesirable. This strategy involves identifying and excluding investments of companies, whose operations are seen as “unsustainable” from an ESG standpoint. Overall, negative screens help to embody the “do…
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Exclusion
Exclusion Exclusion refers to the action of prohibiting a company’s securities from being included in a portfolio due to unethical, harmful, or illegal business activities. ESG criteria are utilized to assess a company’s compliance with desired standards, and if found lacking, it may be excluded from investment consideration, thus restricting its access to capital. The…