Investment Screening

With Investment Screens, a number of different criteria are used to “screen out” certain types of investments that may be inconsistent with an investor’s personal values because of controversial business practices, such as military or tobacco, or because they don’t meet defined Environmental, Social or Governance (ESG) criteria.

While this approach has historically been focused on a negative screening, it increasingly incorporates positive ESG criteria to identify companies with more sustainable practices than their industry peers. This facilitates advisors building more diversified financial solutions designed to better address a client’s risk and return preferences. Some asset managers integrate these screens into their regular investment vetting process, which results in Sustainably Integrated investments. Others apply screens to their traditional portfolios resulting in SRI Overlay Screened Investments.

Shareholder Advocacy

To further advance the impact aims of Socially Responsible Investing, its advocates often engage directly with the management of a portfolio company through shareholder resolutions and proxy voting campaigns. Both are effective means of opening dialogue with a company that might otherwise be less receptive to critical input.

Community/Impact Investing

Community and impact investing focuses on addressing major social and/or environmental challenges while generating financial returns. Whether achieved through Community Loan Funds, Community Development Finance Institutions or green real estate funds community investing aims for high levels of environmental and social impact.