25557 Chapter Notes - Chapter 3: Price Drop, Human Resources, Samarco
Document Summary
Cooperation and development (oecd) or the united nations (un) for example. Sometime based on subjective moral or ethical criteria such as exclusion of tobacco or alcohol (e. g. quaker & the pioneer fund). Applied to company shares, corporate bonds and also government bonds which are issued by countries where there are sanctioned breaches of human rights. Environment at industry level may focus on those that have high emission levels, chemical use, air pollutants, water use, use of non-renewable resources, agriculture these will be most susceptible to legislation and scarcities that may occur. Environment cont. at industry level focus on high emission levels. Allows for a transparent process in particular for fund managers including superannuation funds. But it restricts the range of possible investments which could have a negative effect on the risk/ return pro le. Makes it dif cult if not impossible to match a benchmark index unless using a dedicated sustainable index such as the dow jones sustainability index.
