Strategies that follow the Newton sustainable investment process are subject to a set of minimum exclusions referred to as ‘sustainable investment restrictions’ 1. These restrictions include companies involved in or that generate a material proportion of revenues from activities that are deemed to be harmful from an environmental or social perspective. Specifically, these are:
Tobacco production
Corporate issuers that generate any revenues (>0%) from the manufacture of tobacco products.
Tobacco retail and supporting products
Corporate issuers that generate more than 10% of revenue from products that support the tobacco industry and/or retail or wholesale tobacco products manufactured by other companies.
Breaches of the UN Global Compact
Corporate issuers deemed to have violated one or more principles of the UN Global Compact (UNGC).
Controversial weapons manufacture
Corporate issuers that are flagged for current or recent involvement in the manufacture of any of the following weapons: anti-personnel mines, cluster munitions, chemical weapons, biological weapons, nuclear weapons, incendiary weapons, non-detectable fragments, blinding laser weapons, white phosphorous weapons, depleted uranium weapons.
Alcohol production
Corporate issuers that generate 10% or more of revenues from the manufacture of alcoholic beverages.
Gambling operations
Corporate issuers that generate 10% or more of revenues from the owning and/or operation of a gambling venue.
Adult entertainment
Corporate issuers that generate 10% or more of revenues from the production of adult content or the owning and/or operation of adult entertainment venues.
Thermal coal extraction
Corporate issuers that generate 10% or more of revenues from the extraction of thermal coal.
Arctic oil & gas
Corporate issuers that generate 10% or more of revenues from the exploration of oil and gas in Arctic regions.
Oil sands
Corporate issuers that generate 10% or more of revenues from the extraction of oil sands.
Shale energy (fracking)
Corporate issuers that generate 10% or more of revenues from shale energy exploration and/or production.
Oil & gas extraction
Corporate issuers that generate 10% or more of revenues from the extraction of oil and/or gas.
Note: 1 Some strategies following the Newton sustainable investment process may choose to add to these exclusions – but may never subtract.
Source: Newton, 25 October 2024.