latamen
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
50 shades of green meets 95 percent of funds
50 shades of green meets 95 percent of funds
The regulation designed to shake up the sustainable investing landscape in the EU is one month old.
12-04-2021 | Insight
Moving from red to amber in tackling climate change
Moving from red to amber in tackling climate change
Decarbonization pledges have helped the world get back on track to combat global warming.
12-04-2021 | Insight
Sustainable Water – Tap into a liquid asset
Sustainable Water – Tap into a liquid asset
Water is a precious, yet finite resource essential for life, with no adequate substitute.
07-04-2021 | Product video