chinazh
Sustainable Investing Glossary

Positive screening

Investing in companies that show leadership in social and environmental issues, such as employee policies, environmental protection or human rights.

Positive (or affirmative) screening means that rather than excluding companies, investors select companies that set positive examples of environmentally friendly products and socially responsible business practices. Unlike negative screens, which are generally more black and white, positive screens require an analysis of complex issues such as pollution, workplace practices, diversity and product safety. 

Part of a positively screened investment portfolio may consist of smaller companies that have come up with innovative products that enhance the world’s sustainability. Examples are companies generating renewable energy, such as solar power, wind power, and hydrogen fuel cells; manufacturers of natural food and healthy living products; and companies involved in environmental clean-up and recycling. 

A well-diversified portfolio also requires large and medium-sized companies. Larger companies, and the problems they face, are more complex. Positive screening can help determine which of these large companies are heading in a positive direction. Mutual funds and other institutions often use a ‘best-in-class’ approach to positively screen companies. This means that they can include a tobacco company that is showing leadership in its industry, despite the overall record of that particular industry.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
中国迈向碳中和之路蕴藏大量投资机遇
中国迈向碳中和之路蕴藏大量投资机遇
中国——全球最大二氧化碳排放国承诺到2060年实现碳中和,这一消息引发了全球的关注。
14-06-2021 | 市场观点
How climate change and Covid-19 changed the stewardship landscape
How climate change and Covid-19 changed the stewardship landscape
The stewardship landscape evolved rapidly in 2020.
22-04-2021 | Webinar
素食引领可持续风尚
素食引领可持续风尚
如今,消费者在购物、餐馆用餐或在外卖app下单时,都会更加关注可持续性。
12-04-2021 | 市场观点