germanyde
Sustainable Investing Glossary

Negative screening

Excluding companies that engage in activities that are deemed objectionable.

Negative screening means excluding companies that do not comply with specific, pre-set social or environmental criteria. Examples are mutual funds that exclude companies involved in the production of alcohol, tobacco or gambling products, also referred to as ‘sin stocks’. Other negative screens frequently applied are on weapons manufacturers, nuclear power producers or companies that use child labor. 

Negative screening can be a first step for investors to invest sustainably. The downside is that it has no net impact, as there is always someone that is willing to buy the relevant shares instead.

Creating returns that benefit the world we live in
Creating returns that benefit the world we live in
Sustainable investing
Bracing for climate change impact
Bracing for climate change impact
Institutional investors agree that they need to prepare for climate impact.
18-10-2021 | Digitales Event
Wasserverbrauch der Chip-Industrie
Wasserverbrauch der Chip-Industrie
Der Klimawandel sowie eine zunehmende Nachfrage nach Silizium-Wafern und Mikrochips gefährden die Wasserressourcen und die globalen Lieferketten.
18-10-2021 | Spannende Zahlen
Six steps to climate-proof your investments
Six steps to climate-proof your investments

A visual roadmap to net zero

15-10-2021 | Einblicke