Responsible investing: Short selling increases impact

There are three main approaches to integrating sustainability in a portfolio: exclusion, scoring and thematic. Exclusion is currently the predominant framework used in the industry and entails excluding companies involved in certain activities, e.g., alcohol, tobacco, predatory lending. Scoring is a more sophisticated approach, which, as its name suggests, scores companies on certain attributes grouped under three main factors: environmental, social and governance (E, S and G). Finally, thematic is regarded as an evolution of the first two, using an approach that focuses on one or more a...