Social screening process

 

Through Sustainalytics, investments considered for the BenchmarkPlus Canadian SRI Portfolio are analyzed through an Exclusionary and Qualitative screening process.

Exclusionary criteria

We identify products and/or services that are regarded as materially harmful. Businesses are analyzed based on exposure of total revenues from such controversial activities. A revenue threshold is used for negative screens. Any exposure beyond that threshold makes a company ineligible for investment.

Activities monitored within Exclusionary Criteria include:

  • Investment in Nuclear Power
  • Weapons related contracting or consulting
  • Production or sale of Tobacco products
  • Production or sale of Alcohol products
  • Production or sale of Pornography
  • Gambling

Qualitative criteria

Companies are analyzed based on Environment, Social and Governance (ESG) issues. Activities monitored within Qualitative Criteria include:

Community and society

Companies that contribute positively to the development of communities in which they operate are favoured for inclusion, while those with strained relations are disfavoured. Companies are also evaluated based on their relationships with aboriginal peoples and communities.

Corporate governance

Companies are expected to demonstrate high standards of corporate governance. Those firms that have a history of questionable marketing or production practices, price fixing, antitrust violations or consumer fraud are disfavoured.

Customers

Companies that manufacture products that cause (or allegedly cause) permanent impairment, life threatening or non-life threatening injuries or illness are disfavoured.

Employee relations and workplace diversity

Companies that demonstrate progressive employee relations and diversity performance are favoured. Those with poor health and safety records, labour practices and benefits compared to industry counterparts are disfavoured.

Environment

Companies that have a good environmental record relative to industry counterparts are favoured. Those with poor compliance records, or significant emitters of harmful substances compared to their counterparts, are disfavoured.

Human rights and operations in countries with repressive regimes

Companies whose operations (or suppliers) in less developed countries have been the subject of significant controversies related to treatment of employees, degradation of the environment or relationships with indigenous peoples are disfavoured, as are those firms that operate in countries with repressive regimes.

 

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