globalen
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
Engaging with electric utilities on climate change strategies
Engaging with electric utilities on climate change strategies
Replacing fossil fuels with clean energy is a key element in limiting climate change.
17-10-2019 | Insight
Let’s talk about outcomes: voting on shareholder proposals
Let’s talk about outcomes: voting on shareholder proposals
Sustainable investing is finally getting traction in the market place.
16-10-2019 | Column
Greenwashing leads ICGN corporate governance debate
Greenwashing leads ICGN corporate governance debate
The danger of greenwashing is rising up the sustainable investing agenda, corporate governance experts believe.
09-10-2019 | Insight

Disclaimer

Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

Please confirm that you are a professional investor and/or institutional investor and that you have read, understood and accept the terms of use for this website.

I Disagree