Ethical screening processes

Light green funds allow managers to engage with companies and effect change, a course of action not available to dark green managers who exclude these companies from their portfolios

The plethora of competing screening processes used by investment houses to determine whether a company is suitable for investment in its socially responsible product often appears bewildering. Complex scoring systems and matrices are often used in an attempt to analyse how a company performs on various ethical, social and environmental criteria such as equal opportunities, employment policies, health and safety reporting, and community involvement. These are frequently dictated by the demands of marketing departments. These abstruse methods of determining whether a stock is suitable for inv...