Negative screening

An ESG investment style that focuses on the exclusion of certain sectors, companies, or practices in a fund or portfolio on the basis of specific ESG criteria. A portfolio manager excludes companies based on some of the ESG factors. For example, some specific mining, oil extraction,  transport and tobacco may be excluded due to poor track records on corruption and human rights practices.

Compare: Positive screening, Best-in-class screening

« Back to Index