Best-in-class

An ESG investment style that focuses on sectors, companies, or projects selected for ESG performance relative to industry peers. This approach seeks to identify companies within each industry group with the best ESG practices.  Such an approach does not exclude any industry, but instead focus on finding the best representation within each sector. This allows portfolio managers to maintain sector weightings comparable to a benchmark index.   This helps reduce the risk of overweighting or underweighting certain sectors due to ESG considerations.  

Compare: Positive screening, Negative screening

Also Known As:
Best-in-class screening
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