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Screening Background

 

Screening describes the application of social and environmental guidelines or "screens" to the investment process.  It can be done directly by investing in particular stocks or other investments selected according to specific screens, or through socially responsible mutual funds employing pre-established screens.

Negative screens can include such issues as companies operating with sweatshop or child labour, or the manufacture of alcohol, tobacco or pornography.  Companies falling into these categories are excluded from portfolios containing these screens.

Examples of positive screens include seeking out companies with good employee relations, strong records of community involvement and exemplary environmental impact policies and procedures.

For a list of mutual funds and labour funds using social and/or environmental screening criteria in the selection of  investments click here.

 

 

Three components of socially responsible investing

Screening

Community Investment

Shareholder Advocacy