Screening

The field of socially responsible investment grew out of a desire by investors to avoid investing in businesses that fundamentally conflict with their values, such as companies involved in tobacco or weapons production, or egregious abuses of the environment or human rights.

To meet the basic values of the majority of our clients, Trillium Asset Management Corporation (”Trillium”) typically excludes from our clients’ portfolios companies that are significantly engaged in the production or marketing of firearms and weapons, tobacco, gambling, pornography, and nuclear energy. On a case-by-case basis, we also avoid companies that have systematically failed to protect the environment, human rights, or workers.

In addition to our basic avoidance screens, we proactively seek to invest in companies with strong records of corporate citizenship and those that offer sustainable products to the marketplace, such as renewable energy technologies and organic foods.

Below are some of our perspectives to answer some commonly asked questions about social screening:

Does social screening hurt investment performance?

Many studies have examined whether the application of social screens hurts investment performance. To date, there is no evidence to suggest that social screening - all other factors being equal - hurts financial returns. In fact, a growing number of studies suggest that screening may improve performance.

Does social screening have an impact on companies?

Many conversations with corporate managers have led us to believe that the growing popularity of social screens influences corporate behavior as more companies seek to be listed on leading SRI indexes. Companies that consciously strive to achieve a reputation for social responsibility pay close attention to the criteria that social investors use.

At Trillium, we complement the impact that our social screens have upon corporate policy with a direct strategy of engagement through shareholder activism. We believe both strategies are necessary to allow social investors to use exercise their full potential to influence corporate behavior.

Can I determine my own social screens?

Because all of our accounts are separately managed, we can work with clients to tailor screens for their accounts that address their specific social and environmental concerns. We provide all new clients a social questionnaire that helps us tailor our screening to reflect their values and particular interests.