Strategies

In efforts to better align investment with the broader objectives of society and individuals, various responsible investment strategies have emerged. The categorization of the strategies varies somewhat from place to place and organization to organization. All of them can be grouped into four main strategies: exclusionary screening; best-in-class screening; shareholder engagement; and impact investing. These four broad strategy categories, and further sub-strategies are explained in this section and supported by concrete examples.


How can the money I invest be used to spur companies to adopt better practices?


Exclusion (negative screening)

Ensure that monies are not invested in companies involved in predetermined sectors (nuclear weapons, tobacco, etc.), or in violation of international standards (convention on antipersonnel mines, etc.).

Best-in-class

Ensure that monies are invested in companies with social, environmental and corporate governance performance superior to that of other companies in their industry.

Shareholder engagement

Ensure that monies are used by fund managers to apply pressure internally and impact the behaviour of companies in which securities are held.

Impact investing

Ensure that monies are invested in people and businesses endeavouring to exert a positive impact and proffer solutions to social and environmental challenges.