Screening involves excluding certain investments based on specific criteria. When exclusions are not supported by a global consensus, they are best described as idiosyncratic exclusions.
Universal exclusions (A): These are exclusions that are widely accepted and applied globally, such as the exclusion of companies involved in controversial weapons.
Idiosyncratic exclusions (B): These exclusions are specific to particular investors or investment strategies and are not based on a global consensus. They reflect the unique values or preferences of the investor or investment mandate.
Conduct-related exclusions (C): These are based on a company's behavior or actions, such as violations of human rights or environmental regulations. While these can be idiosyncratic, they are often based on broader accepted standards.
[References:, CFA ESG Investing Principles, MSCI ESG Ratings Methodology (June 2022), , =================, , , ]
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