A fund that excludes the worst ESG performers relative to their peers is using both negative and norms-based screening.
Why C (both negative and norms-based) is correct:
Negative screening removes poor ESG performers outright.
Norms-based screening excludes companies that violate international ESG standards (e.g., UN Global Compact).
Why not A or B?
A (Negative screening only) is incomplete—norms-based screening also plays a role.
B (Norms-based only) is incorrect—some exclusions go beyond norms (e.g., fossil fuel bans).
[References:, PRI: ESG Screening Strategies (2023), UN PRI’s Guide to Norms-Based Screening, , , , , , ]
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