Posititve and Negative Screening

Pension Advice

Choosing the correct Ethical or Socially Responsible investments will depend on your own beliefs and values. A starting point is to use a screening process.This will help you to analyse which types of industries and companies they would like to either include or exclude.

There are primarily two types of screening, positive and negative.

Negative Screening

The process of Negative Screening excludes investments that you might consider undesirable. For example you might want to exclude some of the following:

  • The arms or defense industry
  • Nuclear power
  • The tobacco and/or alcohol production
  • Gambling
  • Genetic Engineering
  • Third World debt/exploitation
  • Animal Testing

Positive screening

Positive screening helps to identify the businesses that demonstrate the potential to offer good quality, long-term ethical investment opportunities. The positive screening process will help you to avoid businesses that could encounter problems as their day to day operations might not be sustainable in the long term. Positive Screening might include companies involved with

  • Projecting a positive business focus
  • Energy conservation
  • Promotion of Equal Opportunities
  • Renewable Energy
  • Pollution control

Shareholder Engagement

By employing active shareholder engagement it is possible for shareholders and fund managers to encourage a more corporate and social business approach.

It makes sense to consider investing into companies that have the foresight and willingness to adapt.

Share and Follow us:

Share on linkedin
Share on facebook
Share on twitter
Share on email
Share on print
Share on whatsapp

Why not sign up to our regular updates

Just add your email address and we’ll add you to our email list. You can unsubscribe any time

News and Blog Posts

Investment commentary Q1 2020

Global pandemic impact The extended bull run came to an abrupt end in March as the coronavirus continued to spread into Europe and America, and

Investing for the long term

March 2020 will long be remembered as a month when information overload was tested beyond imagination. Embattled investors had to deal, not only with an

Market Volatility and the virus

Long term investment principles The world is watching with concern the spread of the new coronavirus. The uncertainty is being felt around the globe, and