Ethical Screening for Investments

The priority you give as a charity to different ethical screens should depend on what the objectives and mission of the charity is. In this page, there are suggestions around what ethical screens a charity can begin to focus on, depending on which charitable objective it was created under.

Please note that this is only a guide. A charity should review its mission and aims to decide what screens it believes would be best. These suggestions are indicative of what screens a charity might begin to focus on. They are not a exhaustive list, and charities could consider additional screens as it progresses its responsible investment journey.

1. The prevention or relief of poverty

Screens directly related to the prevention of relief of poverty include: Human Rights, Weapons and Arms Manufacturing and Corporate Responsibility.

Also considering screening out ‘sin stocks’ which make it harder for individuals to get out of poverty: Tobacco and Alcohol and Gambling.

Environmental issues can also lead to health problems and natural disasters which place people further into poverty.

Poor diversity standards can also affect how quickly certain groups of people can increase their living standards.

2. The advancement of education

Screens directly related to the advancement of education include: Human Rights

Also consider screening out issues which increase poverty, as this makes it harder for children in particular to access education: Weapons and Arms Manufacturing, Corporate Responsibility, the environment.

3. The advancement of religion

Depending on the religious objectives of your charity, the following ‘sin stocks’ may be relevant for your charity to avoid: Tobacco and Alcohol, Gambling and Pornography.

You may also want to consider issues related to the fair treatment of people: Human Rights, Weapons and Arms Manufacturing, Corporate Responsibility and the environment.

4. The advancement of health or the saving of lives

Screens directly related to the advancement of health and the saving of lives include: Alcohol and Tobacco, and Weapons and Arms Manufacturing.

Issues related to the environment also have significant impacts on health and the saving of lives.

5. The advancement of citizenship or community development

Screen directly related to the advancement of citizenship or community development include: Corporate Responsibility, Poor diversity standards, Human Rights, and Weapons and Arms Manufacturing.

Issues related to the environment will also have adverse effects on community development.

6. The advancement of the arts, culture, heritage or science

Screen directly related to the advancement of arts, culture, heritage or science include: Poor diversity standards

You may also want to consider issues related to the fair treatment of people: Human Rights, Weapons and Arms Manufacturing, Corporate Responsibility and the environment.

7. The advancement of amateur sport

Screen directly related to the advancement of amateur sport include: Poor diversity standards

You can consider issues related to the fair treatment of people: Human Rights, Weapons and Arms Manufacturing, Corporate Responsibility and the environment.

You may also want to consider issues which relate to poor health: Tobacco and Alcohol

8. The advancement of human rights, conflict resolution or the reconciliation or the promotion of religious or racial harmony or equality and diversity

Screen directly related to the advancement of human rights, conflict resolution or the reconciliation or the promotion of religious or racial harmony or equality and diversity include: Human Rights, Weapons and Arms Manufacturing, Corporate Responsibility, diversity standards and the environment.

9. The advancement of environment protection or improvement

Screen directly related to the advancement of environmental protection or improve include all issues related to the environment.

Also consider issues which could increase the likelihood of environmental degradation: Human Rights, Weapons and Arms Manufacturing, Corporate Responsibility and Animal Rights.

10. The relief of those in need, by reason of youth, age, ill-health, disability, financial hardship or other disadvantage

Screen directly related to the relief of those in need include: Human Rights and Corporate Responsibility.

Issues which increase hardship can include: Weapons and Arms Manufacturing, diversity standards and the environment.

Issues which are bad for health and can increase financial hardship: Tobacco and Alcohol and Gambling

 

11. The advancement of animal welfare

Screen directly related to the advancement of animal welfare: Animal Rights

Also consider issues which can indirectly affect animal welfare: Weapons and Arms Manufacturing,  and the environment.

 

12. The promotion of the efficiency of the armed forces of the crown, or of the efficiency of the police, fire and rescue services or ambulance services

Screen directly related to the promotion of the efficiency of the armed forces of the crown, or of the efficiency of the police, fire and rescue services or ambulance services include: Human Rights and Corporate Responsibility.

13. Any other charitable purposes

If your charity’s aims do not fit into any of the twelve charitable objectives above you will need to consider primary and secondary concerns for your charity based on its specific purpose.

The EIRIS Foundation is able to provide bespoke support if required.

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