Nucleus Wealth’s ethical screening definitions

As you may know, Nucleus Wealth offers an array of ethical screens you can use to exclude certain practices from your investments. Below you will find a definition of exactly what each of the ethical screens removes from the investments

[section label=”Climate change”] [row] [col span__sm=”12″] [row_inner] [col_inner span=”4″ span__sm=”12″] [/col_inner] [col_inner span=”4″ span__sm=”12″] [ux_image id=”13122″] [/col_inner] [col_inner span=”4″ span__sm=”12″] [/col_inner] [/row_inner] [/col] [col span__sm=”12″] [accordion] [accordion-item title=”No Fossil Fuels (Worst Offenders)”]

Removes the worst polluters, in particular, companies that use Lignite coal or create oil from Tar Sands.

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Fossil Fuels (Any)”]

Removes companies where more than 10% of the company is involved in coal, oil or gas.

Sources: GICS sector is used as the initial screen, also sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Coals Seam Gas or Fracking”]

Removes companies who are involved in Coal Seam Gas extraction and fracking

Sources: GICS sector is used as the initial screen, also sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Nuclear Power”]

Removes companies with Nuclear power stations or producers of Uranium

Sources: GICS sector is used as the initial screen, also sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Old Growth Forest Logging”]

Remove companies that are involved with logging Old Growth Forests

Sources: include sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [/accordion] [/col] [/row] [/section] [section label=”War”] [row] [col span__sm=”12″] [row_inner] [col_inner span=”4″ span__sm=”12″] [/col_inner] [col_inner span=”4″ span__sm=”12″] [ux_image id=”13123″] [/col_inner] [col_inner span=”4″ span__sm=”12″] [/col_inner] [/row_inner] [/col] [col span__sm=”12″] [accordion] [accordion-item title=”No Arms (Worst Offenders)”]

Removes companies that are known to produce cluster munitions and landmines.

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Arms (Any)”]

Removes companies that are known to directly produce weapons or ammunition

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Nuclear Weapons”]

Removes companies that are known to produce Nuclear Weapons

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [/accordion] [/col] [/row] [/section] [section label=”Human Rights”] [row] [col span__sm=”12″] [row_inner] [col_inner span=”4″ span__sm=”12″] [/col_inner] [col_inner span=”4″ span__sm=”12″] [ux_image id=”13124″] [/col_inner] [col_inner span=”4″ span__sm=”12″] [/col_inner] [/row_inner] [/col] [col span__sm=”12″] [accordion] [accordion-item title=”No Undemocratic Countries”]

Removes companies from countries that score below 7 on the Democracy Index (from the Economist Intelligence Unit). Note this category removes some countries that are rated as Flawed Democracies like Singapore, Hong Kong or Brazil. Also removes companies where more than 20% of the company is owned by a government organization from a country that rates below 7.

Sources: Economist Intelligence Unit

[/accordion-item] [accordion-item title=”No Economically Repressed Countries (Worst Offenders)”]

Removes companies from countries that rate either “Repressed” or “Mostly Unfree” as assessed by the Index of Economic Freedom (Wall Street Journal and the Heritage Foundation). Also removes companies where more than 20% of the company is owned by a government organization from a country that is Repressed or Mostly Unfree.

Sources: Wall Street Journal

[/accordion-item] [accordion-item title=”No Economically Repressed Countries (Any)”]

Removes companies from countries that are not either “Free” or “Mostly Free” as assessed by the Index of Economic Freedom (Wall Street Journal and the Heritage Foundation). Note that this category removes many European Countries like Spain or France – the “worst offenders” version does not. Also removes companies where more than 20% of the company is owned by a government organization from a country that is not free or mostly free.

Sources: Wall Street Journal and the Heritage Foundation

[/accordion-item] [accordion-item title=”No Morally Repressed Countries (Worst Offenders)”]

Removes companies from countries that rate “Insufficient Moral Freedom” or below as assessed by the World Index of Moral Freedom. Note this category removes countries like Singapore, South Korea or China. Also removes companies where more than 20% of the company is owned by a government organization from a country that has low or very low moral freedom. Religious freedom, bioethical freedom, drugs freedom, sexual freedom, and family and gender freedom are assessed.

Sources: Wall Street Journal and the Heritage Foundation

[/accordion-item] [accordion-item title=”No Morally Repressed Countries (Any)”]

Removes companies from countries that score below “High Moral Freedom” on the World Index of Moral Freedom. Note this category removes countries like Japan, Singapore, South Korea or China. Also removes companies where more than 20% of the company is owned by a government organization from a country that rates poorly.

Sources: World Index of Moral Freedom is sponsored and published by the Foundation for the Advancement of Liberty.

[/accordion-item] [accordion-item title=”No Immigration Detention”]

Removes companies involved in immigration detention centres.

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”No Jails”]

Removes companies involved in running jails

Sources: Sustainalytics, S&P Capital IQ, SNL and company presentations.

[/accordion-item] [accordion-item title=”Lack of Gender Diversity (Worst Offenders)”]

Removes companies that have less than 10% of their board or board + top 5 executives being female.

NOTE: This will remove many Japanese stocks from your portfolio.

Sources: Nucleus source data from Capital IQ on board and senior management. We use this to calculate which companies meet this criteria.

[/accordion-item] [accordion-item title=”Lack of Gender Diversity”]

Removes companies that have less than 20% of their board or board + top 5 executives being female.

NOTE: This will remove many Japanese stocks from your portfolio.

Nucleus source data from Capital IQ on board and senior management. We use this to calculate which companies meet this criteria.

[/accordion-item] [/accordion] [/col] [/row] [/section] [divider width=”1095px” height=”5px”]

Additional questions? Don’t hesitate to contact us via email or booking a call