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Sustainable Investing Glossary

Exclusion

The exclusion of sectors or companies from an investment portfolio if they do not comply with specific ESG criteria.

Investors can choose to exclude a list of controversial countries or companies that do not comply with international agreements or treaties, such as producers of controversial weapons. 

Sustainable asset managers have the primary duty to obtain a good performance for their clients, and want to achieve this in a sustainable way. Consequently, they tend to focus less on exclusion, but prefer to have a constructive dialogue with companies to encourage them to improve their sustainability performance. If companies are excluded from the outset, the asset manager can no longer exert any influence on them. 

Ethically driven funds can take this further and exclude companies that do not comply with their moral beliefs, such as companies that are involved in deforestation or child labor.

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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