Bjorn: Initial stub article regarding negative screening.

2026-04-06T03:13:13Z

Initial stub article regarding negative screening.

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Negative and [[Positive Screening]] are tools used to judge corporations against each other on environmental, social or governance (ESG) measures.

[[Positive Screening]] is what we would think of as a contest to determine the best choice in a class or geographic area.

[[Negative Screening]] is the opposite. It is a contest to exclude the worst in class, or to exclude whole industries or classes of businesses from consideration of investment.

It should be noted that while [[Negative Screening]] is about avoidance in investing, or in the case of shopping, not purchasing a product or from a business, [[divestment]] is about removing funds from a company or investment or ceasing to purchase it going forward.

The effectiveness of [[Negative Screening]] is studied in terms of investments by Harvard Law, and it was concluded that such screening did not affect sin businesses from procuring capital. Perhaps the best way to think of negative screening in these instances is that the investment firm is signaling value to its retail investors to attract their own clients rather than making an earnest attempt to halt any so-called sin based business from operating.

https://www.robeco.com/en-us/glossary/sustainable-investing/negative-screening

https://www.fe.training/free-resources/esg/positive-vs-negative-screening/

https://corpgov.law.harvard.edu/2022/08/08/does-esg-negative-screening-work/

[[Category:Dictionary]]
[[Category:Financial & Economic Principles]]

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Negative Screening - Revision history

Bjorn: Initial stub article regarding negative screening.