What Activities Do Negative Screening Filter From Ethical Investment Funds?

A rather blunt but often effective tool in ethical investment is the use of negative screening. The first ethical and socially responsible investment funds used this method to help guide their decision making.

Essentially, negative screening is a process which excludes companies as potential investments by takng into account their corporate involvement in unsuitable industries. As time has passed and the ethical investment world has evolved, these criteria have been expanded to include other areas such as the environment. Some examples of business areas which are generally excluded by negative screening include:

- alcohol

- arms makers and sellers

- breaches in the human rights of employees or local residents

- gambling

- nuclear power

- polluters

- supporters of oppressive regimes

- pornography and adult entertainment

- tobacco

- users of pesticides in farming