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Sustainable Investing Glossary

Exclusion

The exclusion of sectors or companies from an investment portfolio if they do not comply with specific ESG criteria.

Investors can choose to exclude a list of controversial countries or companies that do not comply with international agreements or treaties, such as producers of controversial weapons. 

Sustainable asset managers have the primary duty to obtain a good performance for their clients, and want to achieve this in a sustainable way. Consequently, they tend to focus less on exclusion, but prefer to have a constructive dialogue with companies to encourage them to improve their sustainability performance. If companies are excluded from the outset, the asset manager can no longer exert any influence on them. 

Ethically driven funds can take this further and exclude companies that do not comply with their moral beliefs, such as companies that are involved in deforestation or child labor.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
Robeco strengthens exclusions policy for fossil fuels
Robeco strengthens exclusions policy for fossil fuels
Robeco is extending its exclusion policy for fossil fuel producers and users to its entire range of strategies to help combat global warming.
24-09-2020 | Insight
SI Opener: Loss of biodiversity is a bigger threat than climate change
SI Opener: Loss of biodiversity is a bigger threat than climate change
Biodiversity represents the knowledge learned by evolving species over millions of years.
24-09-2020 | SI Opener
Gross Domestic Past-it – rethinking how we value societal progress
Gross Domestic Past-it – rethinking how we value societal progress
The Covid-19 crisis has shown that we need to find other ways of measuring national success than just GDP, Robeco’s sustainability experts say.
22-09-2020 | Insight