ETHICAL INVESTMENT SCREENING CRITERIA

Ethical investment funds generally employ 2 or more of the following techniques:

Negative screening (avoid investing in companies with the following activities)

- alcohol production and sales
- animal testing (pharmaceuticals)
- animal testing (non-pharmaceuticals)
- armaments
- environmental damage
- gambling services
- genetically modified food / organisms
- nuclear power
- oppressive regimes
- pornography
- tobacco production and sales

Positive screening (seek to invest in companies with the following activities)

- community involvement
- employee / welfare rights
- environmental management / policy / reporting
- packaging reduction
- sustainable forestry

Engagement - where fund managers seek to exercise their influence as large shareholders in companies, and persuade them to be more socially responsible. For example, in 2003, pharmaceutical giant GlaxoSmithKline was forced to lower its AIDS drug prices for the world’s poorest nation’s and re-think its fat-cat pay deal for its Chief Executive and Board following pressure from shareholders.

For details of our Ethical Funds Screening Service click here.