united statesen
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.

Making better-informed investment decisions
Making better-informed investment decisions
Sustainable investing
Logo

Disclaimer

This page is intended for US prospects, clients and investors only and includes information about the capabilities, staffing and history of RIAM US and its participating affiliates, which may include information on strategies not yet available in the US. SEC regulations are applicable only to clients, prospects and investors of RIAM US. Robeco BV, Robeco HK and Robeco SH are considered a “participating affiliate” of RIAM US and some of their employees are “associated persons” of RIAM US as per relevant SEC no-action guidance. Employees identified as associated persons of RIAM US perform activities directly or indirectly related to the investment advisory services provided by RIAM US. In those situations, these individuals are deemed to be acting on behalf of IUAM, a US SEC registered investment adviser.

By clicking I agree, I confirm that I have read and understood the above.
I Disagree