Development Accord Ethical Invesment Policy Overview
Development Accord aims to ensure that all its investments are made in an ethically responsible manner by only investing in equities or funds that represent companies assessed as demonstrating environmental sustainability and social consciousness and avoiding companies that do not comply with our ethical guidelines.
Screening Process:
In order to screen companies for compatibility with our ethics policy, a screening process is used both by ourselves and our finacial advisors. This screening process is part of an industry standard and Development Accord has adapted and created its own process using the industry standard as a base. This involves negative screening, which will exclude companies which do not meet our criteria as well as positive screening to ensure the products and services being offered by a particular company comply with our requirements such as sustainability and environmental standards.
Some examples of negative screening include companies which:
• Directly mine uranium for the purpose of weapons manufacture
• Produce alcohol or tobacco
• Manufacture or provide gaming facilities
• Manufacture weapons and/or armaments
• Have been prosecuted for environmental and/or human rights abuses.
Some examples of positive screening include companies which:
• Through their operation provide social or environmental benefits to the community
• Demonstrate good work place practices for employees
• Have established corporate governance procedures and corporate ethical standards.
For example, funds or equities will rate more highly when the relevant companies provide products and services such as:
• Renewable energy
• Sustainable agribusiness
• Ecotourism
• Healthcare, biotechnologies, etc.
• Products that have increased recyclability, reusability and reduced use of materials.
It is Development Accord policy that all direct equities we invest in pass this process. In addition all investment funds that Development Accord uses are categorised as ethical funds and employ a similar process to the one outlined here.
