Responsible Investing Screens vs. Active Ownership


If you care about issues like climate change, racial justice, and gender equality, as an investor it’s easy enough to screen a custom passive SMA (Separately Managed Account) to include only companies you deem “good” from an ESG perspective. But what if it’s possible to make the “bad” companies better? The only way to do that is by engaging with them through proxy voting, shareholder resolutions, and other active ownership tactics. And to do that, you have to own those companies—and not screen them out.

This short video explains the trade-offs of screening versus active ownership and when one may make sense over the other.

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