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Sustainable Investing Glossary

Best in class

The best-in-class approach to Sustainable Investing means investing in companies that are leaders in their sector in terms of meeting environmental, social and governance criteria.

An investor who follows the best-in-class principle does not exclude sectors or industries, such as tobacco or mining, but instead invests in the companies that make the most effort to meet the environmental, social and governance criteria that are relevant for their respective industries. A next step is to engage with these companies to help them improve their sustainability performance. 

The most sustainable companies in a sector – also referred to as best practice – are used as a benchmark to be equaled or surpassed. 

The Dow Jones Sustainability Indices follow the best-in-class principle: out of the 2,500 corporations listed in the Dow Jones Global Index, a selection is made every year of the 10% of companies in a given sector that best meet certain ESG criteria. No industries are excluded from this process. The best-in-class approach helps stimulate competition among companies for inclusion in the indices. To be included or remain in the index, companies have to continually intensify their sustainability initiatives, to the benefit of investors, employees, customers, and ultimately society as a whole.

Making better-informed investment decisions
Making better-informed investment decisions
Sustainable investing
Navigating the ESG labyrinth
Navigating the ESG labyrinth
In this handy guide, we share the knowledge and experience we have gained from decades of sustainable investing.
05-02-2020 | Insight
Exclusions may simply be transferring a problem
Exclusions may simply be transferring a problem
Do exclusions work?
03-02-2020 | Research
Podcast: It’s time asset managers make money talk
Podcast: It’s time asset managers make money talk
If we start investing much more towards the long term, and to sustainable solutions, things will go very, very quickly, says Robeco CEO Gilbert Van Hassel.
22-01-2020 | Podcast
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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.

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