What is the difference between positive and negative ESG screening? Positive ESG screening identifies and selects companies with strong environmental, social, and governance performance compared to industry peers. Negative ESG screening excludes companies involved in activities that do not align with sustainability objectives, such as controversial industries or practices. Both approaches help organizations build portfolios aligned with responsible investment strategies and ESG priorities.
How does ESG screening support investment decision-making? ESG screening provides investors with structured insights into a company’s sustainability performance, risks, and opportunities. By evaluating ESG factors alongside traditional financial analysis, organizations can identify potential risks, assess long-term value creation, and make informed investment decisions aligned with responsible investment goals and stakeholder expectations.
What criteria are used in ESG screening solutions? ESG screening solutions typically evaluate criteria across environmental, social, and governance dimensions. These may include carbon emissions, climate risks, resource management, labor practices, diversity, human rights, business ethics, board structure, regulatory compliance, and controversy assessments. Criteria can be customized based on industry, investment objectives, and specific sustainability requirements.
How does ESG screening help identify greenwashing? ESG screening helps detect greenwashing by comparing company claims against available ESG data, disclosures, policies, controversies, and sustainability performance indicators. A structured screening approach highlights inconsistencies between reported commitments and actual practices, enabling organizations to assess whether sustainability claims are supported by credible evidence and measurable outcomes.
Which industries and asset classes does ESG screening cover? ESG screening can be applied across industries, sectors, and asset classes, including equities, fixed income, private investments, and corporate portfolios. Organizations use ESG screening to evaluate companies across sectors such as energy, manufacturing, technology, finance, healthcare, and consumer goods based on relevant sustainability risks and performance factors.
Who can benefit from SGA’s ESG Screening services? SGA’S ESG Screening services support a range of stakeholders, including corporates benchmarking their sustainability performance, capital market participants building responsible investment portfolios, and ESG data platforms and rating agencies that need reliable, standardized inputs. Our approach adapts to sector-specific requirements and evolving regulatory expectations, helping each stakeholder group make more informed, defensible ESG decisions.